Burger Queen can sell preferred stock for $75 with an estimated flotation cost of $5.00. It is anticipated the preferred stock will pay $5 per share in dividends. a. Compute the cost of preferred stock for Burger Queen. b. Do we need to make a tax adjustment for the issuing firm?
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Burger Queen can sell preferred stock for $75 with an estimated flotation cost of $5.00.
It is anticipated the preferred stock will pay $5 per share in dividends.
a. Compute the cost of preferred stock for Burger Queen.
b. Do we need to make a tax adjustment for the issuing firm?
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