st of preferred stock Taylor Systems has just issued preferred stock. The stock has a 11% annual dividend and a $75 par value and was sold at $73.50 per share. In addition, flotation costs of $6.75 per share were paid. Calculate the cost of the preferred sto e cost of the preferred stock is %. (Round to two decimal places.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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**Cost of Preferred Stock**

Taylor Systems has just issued preferred stock. The stock has a 11% annual dividend and a $75 par value and was sold at $73.50 per share. In addition, flotation costs of $6.75 per share were paid. Calculate the *cost of the preferred stock*.

The cost of the preferred stock is [ ]%. (Round to two decimal places.)
Transcribed Image Text:**Cost of Preferred Stock** Taylor Systems has just issued preferred stock. The stock has a 11% annual dividend and a $75 par value and was sold at $73.50 per share. In addition, flotation costs of $6.75 per share were paid. Calculate the *cost of the preferred stock*. The cost of the preferred stock is [ ]%. (Round to two decimal places.)
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