Multiple Choice
The preferred stock of Dolphin Pools pays an annual dividend of $5.25 a share and sells for $48a share.The tax rate is 35 percent.What is the firm's cost of preferred stock?
A) 9.67 percent
B) 10.94 percent
C) 15.07 percent
D) 15.59 percent
E) 16.47 percent
Correct Answer:
Verified
Correct Answer:
Verified
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