Multiple Choice
A firm has $3 million market value and it sells preferred stock with a par value of $100.If the coupon rate on the preferred stock is 9% and the preferred stock trades at $95,what is the cost of preferred stock financing?
A) 8.75%
B) 9.47%
C) 10.21%
D) 10.41%
E) 10.44%
Correct Answer:
Verified
Correct Answer:
Verified
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