What is the firms cost of preferred stock

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Reference no: EM13835079

The 7.5 percent preferred stock of Rock Bottom Floors is selling for $60 a share. What is the firm's cost of preferred stock if the tax rate is 35 percent and the par value per share is $100?

Options:

14.14 percent

7.50 percent

12.50 percent

13.79 percent

8.13 percent

Reference no: EM13835079

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