Multiple Choice
The 7 percent preferred stock of Midwest Muffler and Towing is selling for $65 per share.What is the firm's cost of preferred stock if the tax rate is 21 percent and the par value per share is $100?
A) 12.79 percent
B) 11.21 percent
C) 11.46 percent
D) 10.55 percent
E) 10.77 percent
Correct Answer:
Verified
Correct Answer:
Verified
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