Multiple Choice
A firm has $1 million market value and it sells preferred stock with a par value of $100. If the coupon rate on the preferred stock is 5% and the preferred stock trades at $91, what is the cost of preferred stock capital?
A) 4.67%
B) 4.95%
C) 5.22%
D) 5.49%
Correct Answer:
Verified
Correct Answer:
Verified
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