Multiple Choice
A firm has $2 million market value and it sells preferred stock with a par value of $100.If the coupon rate on the preferred stock is 8% and the preferred stock trades at $90,what is the cost of preferred stock financing?
A) 8.75%
B) 8.89%
C) 9.21%
D) 9.35%
E) 10.16%
Correct Answer:
Verified
Correct Answer:
Verified
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