FI515 Financial Management:  9-4 Burnwood Tech plans to issue some $60 par preferred stock

FI515 Financial Management: 9-4 Burnwood Tech plans to issue some $60 par preferred stock

FI515 Financial Management

9-4 Cost of Preferred Stock with Flotation Costs
Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend. A similar stock is selling on the market for $70. Burnwood must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock?
FI515 Financial Management: 9-4 Burnwood Tech plans to issue some $60 par preferred stock
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$7
Total price:
$7