Question:
Bosio Inc.'s perpetual preferred stock sells for $85.00 per
Last updated: 7/14/2022
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Bosio Inc.'s perpetual preferred stock sells for $85.00 per share, and it pays an $8.50 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 company's cost of preferred stock for use in calculating the WACC? a. 8.75% b.12.81% c. 8.44% d.10.42% e. 1.35%