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 6% and the preferred stock trades at $98, what is the cost of preferred stock capital?
A) 5.82%
B) 6.12%
C) 6.43%
D) 6.73%
Correct Answer:
Verified
Correct Answer:
Verified
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