Multiple Choice
A firm has determined it can issue preferred stock at $115 per share par value. The stock will pay a$12 annual dividend. The cost of issuing and selling the stock is $3 per share. The cost of thepreferred stock is
A) 10.4 percent.
B) 10.7 percent.
C) 12 percent.
D) 6.4 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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