What is the cost of the preferred stock including flotation


Trivoli Industries plans to issue perpetual preferred stock with an $11 dividend. It is currently selling for $92.50, but flotation costs will be 8% of the market price, so the net price will be $85.10 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places.

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Finance Basics: What is the cost of the preferred stock including flotation
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