question archive 12 Rising High Corporation is raising funds for the company by selling preferred stock
12 Rising High Corporation is raising funds for the company by selling preferred stock
Subject:FinancePrice: Bought3
12 Rising High Corporation is raising funds for the company by selling preferred stock. The preferred stock has a par value of $100 and a dividend rate of 5%. The stock is selling for $70 in the market. An investment bank, Quick Issuance Investment Bank is hired to sell the preferred stock. Quick Issuance charges a flotation fee of 3.5% on the sale of preferred stock. What is the flotation fee adjusted cost of preferred stock? Your choice: 12/15 Qs A: 67.55% B: 7.40% C: 7.04% D: 5.00% E: None of the above
