What is the firms cost of preferred stock

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Reference no: EM131462551

Grill Works and More has 5 percent preferred stock outstanding that is currently selling for $53 a share. The market rate of return is 8 percent and the firm's tax rate is 35 percent. What is the firm's cost of preferred stock?

9.43 percent

7.75 percent

6.22 percent

5.66 percent

8.57 percent

Reference no: EM131462551

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