What woud the cost of new preferred if the firm decided to


A firms existing preferred stock pays a $4 dividend, has a par value of $50 and is selling for $45. What woud the cost of new preferred if the firm decided to issue additional shares at the current price and dividend? Assume investment bankers will charge $2 per share to tell the stock & the firm has a 30% tax rate.

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Financial Management: What woud the cost of new preferred if the firm decided to
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