Multiple Choice
Ningbo Shipping 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 the preferred stock is
A) 6.4%.
B) 9.4%.
C) 10.7%.
D) 14.7%.
E) none of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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