What is firms cost of preferred stock


Assignment:

Suppose your firm wants to finance a project, in part, with 2.0%, $100 par preferred stock which the firm's investment bankers say can be sold for $20 a share. The investment bankers will charge your firm $1 a share to handle the stock issue. Given these conditions, what is your firm's cost of preferred stock?

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Finance Basics: What is firms cost of preferred stock
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