If preferred stock pays a $5 annual dividend and sells for $50,the cost of preferred stock financing is 10% since dividends are not tax deductible and preferred stock is sold without flotation costs.

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The Answer of If preferred stock pays a $5 annual dividend and sells for $50,the cost of preferred stock financing is 10% since dividends are not tax deductible and preferred stock is sold without flotation costs.

If Preferred Stock Pays a $5 Annual Dividend and Sells