The cost of a new preferred stock issue is equal to The preferred stock...

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Finance

  1. The cost of a new preferred stock issue is equal to
    1. The preferred stock dividend divided by its market price.
    2. The preferred stock dividend divided by its par value.
    3. The preferred stock dividend times one minus the tax rate divided by its net price.
    4. The preferred stock dividend divided by the net selling price of the preferred stock.

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