APR Company’s preferred stock is currently selling for $24.00, and pays a perpetual annual dividend of $2.80 per share

APR Company’s preferred stock is currently selling for $24.00, and pays a perpetual annual dividend of $2.80 per share

150 150 Support

APR Company’s preferred stock is currently selling for $24.00, and pays a perpetual annual dividend of $2.80 per share. New issue of preferred stock would have $4 per share in flotation costs. The firm’s tax rate is 40%. Compute the cost of new preferred stock.

Facebooktwittergoogle_plusredditpinterestlinkedinmail