Kims Specialized Cruises plans to issue preferred stock at a price of $20 per share. The par value is also $20 per share.
The annual dividend will be $2 per share, and issuance costs are expected to be $1.5 per share.
What is the cost of raising funds with preferred stock for Kim?
Group of answer choices
a. 10.81%
b. 8.72%
c. 9.76%
d. 8.00%
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