Multiple Choice
Jones Distributing Corp.can sell common stock for $27 per share and its investors require a 17% return.However,the administrative or flotation costs associated with selling the stock amount to $2.70 per share.What is the cost of capital for Jones Distributing if the corporation raises money by selling common stock?
A) 27.00%
B) 18.89%
C) 18.33%
D) 17.00%
Correct Answer:
Verified
Correct Answer:
Verified
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