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Business, 28.07.2021 18:30 whathelppp

Happy Giraffe has preferred stock that pays a dividend of $9.00 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 2.10%. Required:
a. How much will Happy Giraffe pay to the underwriter on a per-share basis?
b. After it pays its underwriter, how much will Happy Giraffe receive from each share of preferred stock that it issues?

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