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...







































































































































































Preferred stockPar valueSale priceFlotation
cost
Annual dividend
A $            100 $            101 $           9.0011%
B                 40                 38 $           3.508%
C                 35                 37 $           4.00 $           5.00
D                 30                 265% of par $           3.00
E                 20                 20 $           2.509%
Solution
Stock A
Par value $            100
Sale price $            101
Flotation cost $           9.00
Annual dividend11%
Dividend payment
Proceed from sale
Cost of preferred stock

By using cell references calcualte the cost of preferred stock A



Jun 04, 2022
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