Unformatted text preview: Question 4
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Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a
constant dividend of $4.12 per year. That preferred stock is currently selling for $63.30. However, the underwriter would charge
flotation costs of $3.28 per share. What is the form's cost of preferred stock financing?
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)
x (6.86) x (%)...
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- Spring '11