Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 10, Problem 14P
Summary Introduction

To determine: The cost of preferred stock including flotation.

Introduction:

Cost of Preferred Stock:

The return earned by firm’s preferred stockholders from the investment in preferred stock is a cost of the preferred stock. It is computed by dividing the dividend received on preferred stock by the current price of the preferred stock.

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Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

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