hello tutor provide correct answer General accounting question Pacific Industries issued preferred stock with a par valueof $100 and a dividend rate of 6%. The stock is currentlytrading at $85 per share. If preferred stock flotation costsare 12% of the sale proceeds, calculate Pacific Industries'cost of preferred stock.

Step 1: Analysis of information givenPar value of preferred stock = $100Dividend rate = 6%Selling…

Answered: Pacific Industries issued preferred…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pacific Industries issued preferred stock with a par value of $100 and a dividend rate of 6%. The stock is currently trading at $85 per share. If preferred stock flotation costs are 12% of the sale proceeds, calculate Pacific Industries' cost of preferred stock.