Hettenhouse Company's perpetual preferred stock : What is the company's cost of preferred stock for use in calculating the WACC?
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Hettenhouse Company's perpetual preferred stock sells for $102.50 per share, and it pays a $9.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?
A. 9.27%
B. 9.65%
C. 10.04%
D. 10.44%
E. 10.86%
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Hettenhouse Company's perpetual preferred stock sells for $102.50 per share, and it pays a $9.50 annual dividend. ...
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