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What is the firm cost of preferred stock

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Question - The preferred stock of pollard's pools pays an annual dividend of $5.50 a share and sells for $42 a share. The tax rate is 34 percent. What is the firm's cost of preferred stock?

a- 12.28 percent

b- 13.10 percent

c- 15.07 percent

d- 15.59 percent

e- 16.47 percent

Reference no: EM131798393

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