The 84 Percent Preferred Stock of Dynachili Distributing Is Selling for for $48

Multiple Choice

The 8.4 percent preferred stock of Dynachili Distributing is selling for $48 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) 19.52 percent
B) 17.94 percent
C) 18.19 percent
D) 18.54 percent
E) 17.50 percent