How to Calculate The Cost of a Newly Issued Preferred Stock

Convert the flotation cost percent to a decimal by dividing the number by 100. For example, a 5 percent flotation cost divided by 100 would be:
5/100=0.05
Subtract the decimal of the flotation cost from 1. For the example:
1 -- 0.05 = 0.95
Multiply the market price for the preferred stock by one minus the flotation cost. For the example, a market price of $100 would yield:
100x (0.95) = 95.
Divide the dividend paid by the preferred stock by this number. For the example, a dividend for the stock of $5 would result in:
5/95 = 0.053
Multiply this result by 100 to find the cost of the newly issued preferred stock as a percent. For the example:
0.053 x 100 = 5.3 percent.

How to Buy De Beers Stock (5 Steps)

Find the current price for LVMH stock, which trades on the Paris stock exchange in France. LVMH owns a 50 percent stake in De Beers. Use the link in Resources for a direct connection to the Euronext site.
Convert the quoted price into U.S. dollars to figure out the per share cost. Use the link in Resources for an online tool to help with the currency conversion.
Contact your established brokerage firm (by phone or online) and place a trade for symbol 'MC' on the Paris exchange. The Paris exchange is open weekdays until 11:30 a.m. eastern time.
If the Paris exchange is closed or if the broker requires it, place an overnight order that will trade the next day in Paris. Use the per share price to specify the price in Euros that is the maximum to be offered.
Wait 3 business days and the trade will settle. You now own LVMH stock and through it you have bought De Beers stock.