Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual dividend equal to 15.0% of par. The company believes that the market value of the stock would be $576.00 per share with flotation costs of $52.00 per share. The firm's marginal tax rate is 40%. What is the firm's cost of preferred stock?
+2
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual dividend equal ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual dividend equal to 15.0% of par. The company believes that the market value of the stock would be $576.