Perpetual preferred stock from Franklin Inc. sells for $97.50 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 company's perpetual preferred stock currently sells for 92.50 per share and it pays an 8.00 annual d dividend. if if the commpany were to sell a new p preferred issue, it would incure a floationa cost of 5.00 what is the preferred cost?

Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $97.00; but flotation costs will be 10% of the market price, so the net price will be $87.30 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places.

%

Jones Design wishes to estimate the value of its outstanding preferred stock. The preferred issue has $80 par value and pays an annual dividend of $6.40 per share. Similar-risk preferred stocks are currently earning a 9.3% annual rate of return. A) What is the market value of the outstanding preferred stock? B) If an investor purchases the preferred stock at the value calculated in part a, how much does she gain or lose per share if she sells the stock when the required return on similar-risk preferred stocks has risen to 10.5%? Explain.