Porter Enterprises has preferred stock outstanding that sells for $97.75. If the firm were to issue new preferred stock, it would incur a 1.5 percent flotation cost. If the preferred stock pays a $7.25 annual dividend, what is the firm's cost of preferred stock?

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The Answer of Porter Enterprises has preferred stock outstanding that sells for $97.75. If the firm were to issue new preferred stock, it would incur a 1.5 percent flotation cost. If the preferred stock pays a $7.25 annual dividend, what is the firm's cost of preferred stock?

Porter Enterprises Has Preferred Stock Outstanding That Sells for $97