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What are the correct answers and how did you
solve for them? please show work! thanks

Aa Aa 3. The cost of preferred stock Firms that carry preferred stock in their capital mix want to not only distribute divide
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Answer #1

rate positively ..

ans 1 Company will receive = =100*(1-2.2%)
97.8
ans 2 Cost of preferred stock = =9/100*(1-2.2%)
8.80%
ans 3 Cost that INCREASE the cost of preferred stock
with out flotation cost is MATERIAL enough to not ignore
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