Multiple Choice
Ningbo Shipping has issued preferred stock at its $125 per share par value. The stock will pay a $15 annual dividend. The cost of issuing and selling the stock was $4 per share. The cost of Ningbo Shipping preferred stock is:
A) 7.2%.
B) 12.0%.
C) 12.4%.
D) 15%.
Correct Answer:
Verified
Correct Answer:
Verified
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