What is the cost of the preferred stock

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Reference no: EM131525656

You work for a company with 30,000 of 4% coupon bonds, 20,000 $50 par $2.50 preferred stock, and 1,000,000 common shares outstanding with a market price of $22.00 per share and a required rate of return of 14%. What is the cost of the preferred stock if the stock trades at $45.00?

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Reference no: EM131525656

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