Explore BrainMass

Explore BrainMass

    Cost of Preferred Stock

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

    Medco Corporation can sell preferred stock for $80 with an estimated flotation cost of $3. It is anticipated that the preferred stock will pay $6 per share in dividends. Compute the cost of preferred stock for Medco Corp.

    © BrainMass Inc. brainmass.com March 4, 2021, 5:56 pm ad1c9bdddf
    https://brainmass.com/economics/finance/cost-preferred-stock-19509

    Solution Summary

    The solution calculates the price of preferred stock

    $2.19

    ADVERTISEMENT