Diggin Tools just issued new preferred stock,which sold for $85 in the stock markets.Holders of the stock will receive an annual dividend equal to $9.35.The flotation costs associated with the new issue were 6 percent and Diggin's marginal tax rate is 30 percent.What is Diggins cost of preferred stock,kps?

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The Answer of Diggin Tools just issued new preferred stock,which sold for $85 in the stock markets.Holders of the stock will receive an annual dividend equal to $9.35.The flotation costs associated with the new issue were 6 percent and Diggin's marginal tax rate is 30 percent.What is Diggins cost of preferred stock,kps?

Diggin Tools Just Issued New Preferred Stock,which Sold for $85