A firm has determined it can issue preferred stock at $115 per share p
A firm has determined it can issue preferred stock at $115 per share par value. The stock will pay a $12 annual dividend. The cost of issuing and selling the stock is $3 per share. The cost of the preferred stock is ________.
A) 6.4 percent.
B) 10.4 percent.
C) 10.7 percent.
D) 12 percent.
ANSWER
C
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