Overland's preferred stock was issued 3 years ago to yield 10% of its par value of $30. The stock is selling in the market today for $50. Assuming that Overland pays 15% in flotation costs on new security issues, calculate the cost of preferred stock financing.

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The Answer of Overland's preferred stock was issued 3 years ago to yield 10% of its par value of $30. The stock is selling in the market today for $50. Assuming that Overland pays 15% in flotation costs on new security issues, calculate the cost of preferred stock financing.

Overland's Preferred Stock Was Issued 3 Years Ago to Yield