Explore BrainMass

Explore BrainMass

    Cost of preferred stock including flotation costs

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    On the New York Stock Exchange, the preferred stock of Ward Butler Inc., which has a stated dividend of 8% and a par value of $50, is trading for $49.00. The company will sell 1 million new shares at the going market rate and will have to pay 5% in flotation costs. What is the cost of the preferred stock, including flotation?

    © BrainMass Inc. brainmass.com October 9, 2019, 10:20 pm ad1c9bdddf

    Solution Summary

    This provides the steps to calculate the Cost of preferred stock including flotation costs