What is the companys cost of preferred stock for use in


ABC Inc.'s perpetual preferred stock sells for $50 per share, and it pays an $5.6 annual dividend.  If the company were to sell a new preferred issue, it would incur a flotation cost of $4 per share.  What is the company's cost of preferred stock for use in calculating the WACC?

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Financial Management: What is the companys cost of preferred stock for use in
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