The 525 Percent Preferred Stock of Robert Bruce Security Is Selling

Multiple Choice

The 5.25 percent preferred stock of Robert Bruce Security is selling for $50.26 a 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) 8.57 percent
B) 9.20 percent
C) 10.45percent
D) 11.86 percent
E) 10.21 percent