What is cost of preferred stock

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Reference no: EM131948640

1. Two projects are mutually exclusive if: Select one:

a. they are independent

b. they both have negative NPVs

c. the acceptance of one means the other will be rejected

d. none of the answers is correct

e. they both have positive NPVs

2. Preston Industries has a WACC of 12.98 percent. The capital structure consists of 61.9 percent equity and 36.9 percent debt. The aftertax cost of debt is 7.4 percent and the cost of equity is 16.10 percent. What is the cost of preferred stock?

23.63 percent

26.53 percent

25.83 percent

27.73 percent

Reference no: EM131948640

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