document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1149512>Question 1149512</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Perpetual preferred stock from Franklin Inc. sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?<BR>\n" );
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document.write( "a. 9.08% \r<BR>\n" );
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document.write( "b. 8.72% \r<BR>\n" );
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document.write( "c. 9.82% \r<BR>\n" );
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document.write( "d. 9.44% \r<BR>\n" );
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document.write( "e. 10.22% \r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #770853 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52781)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=770853\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .\r<BR>\n" );
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document.write( "Let me explain you something.\r<BR>\n" );
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document.write( "There is the area of Math problems and there is the area of Finance problems.\r<BR>\n" );
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document.write( "There is some intersection of these two areas.\r<BR>\n" );
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document.write( "While the problem is in Math, we can help.\r<BR>\n" );
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document.write( "Even if the problem is in intersection area, we still can help.\r<BR>\n" );
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document.write( "But THIS problem is strictly in the Finance area, highly specialized.\r<BR>\n" );
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document.write( "In this area we CAN NOT help at this forum.\r<BR>\n" );
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document.write( "So, you simply waste your time, posting this problem and such problems to this forum.\r<BR>\n" );
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document.write( "Find another, more appropriate site for your needs.\r<BR>\n" );
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