Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $100 and a dividend rate of 6.0%. The stock is selling for $80.00 in the market. Kyle hires Wilson Investment Bankers to sell the preferred stock. Wilson charges a fee of 3% on the sale of preferred stock. What is the cost of preferred stock for Kyle using the investment banker? What is the cost of preferred stock for Kyle using the investment banker?

7.73%

Explanation:

The computation of the cost of preferred stock is shown below:

As we know that

Cost of preferred stock = {Annual dividend ÷ (price - flotation cost)} × 100

where,

Annual dividend = 6.0% × $100 = $6

Flotation cost = $80 × 0.03 = $2.4

And, the price is $80

So, the cost of preferred stock is

={$6 ÷ ($80 - $2.4)} × 100

= ($6 ÷ 77.6) × 100

= 7.73%

We simply applied the above formula

moschino logo plaques womens high top sneaker red

shop 2018 moschino outlet online store, buy moschino logo plaques womens high top sneaker red with big discount, fast delivery and free worldwide

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

i really hope this answer you out! it makes my day people like you and giving back to the community that has me through school! if you could do me a favor, if this you and this is the very best answer and you understand that all of my answers are legit and top notch. mark as brainliest! and have a awesome day!