Preferred stock Par value Sale price Flotation cost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Solution Stock A Par value $ 100 Sale price $ 101 Flotation cost $ 9.00 Annual dividend 11% Dividend payment Proceed from sale Cost of preferred stock By using cell references calcualte the cost of preferred stock A

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A: Hi, since you have posted multiple questions, we will answer only the first one as per authoring…

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Q: What is the cost of the preferred stock, including flotation?

A: Cost of Preferred stock Rp = Annual Dividend/Current market price - floatation cost

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A: In this question we need to compute the cost of preferred stock for the firm.

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A:

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Q: least

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