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 8% and the preferred stock trades at $92, what is the cost of preferred stock capital?
A) 8.26%
B) 8.70%
C) 9.13%
D) 9.57%
Correct Answer:
Verified
Correct Answer:
Verified
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