Perpetual preferred stock from Franklin Inc. sells for $97.50 per share, and it pays an...
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Perpetual preferred stock from Franklin Inc. sells for $97.50 per share, and it pays an $8.33 annual dividend.If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors.What is the companys cost of preferred stock for use in calculating the WACC?
- 8.40%
- 8.90%
- 9.15%
- 9.62%
- 9.75%
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