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What the cost of the preferred stock

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Question - A firm issued preferred stock last year at its $125 per share par value. The stock pays 15% a annual dividend. The cost of issuing and selling the stock (floating cost) is 15%. What the cost of the preferred stock?

a. 8.2 percent

b. 13 percent

c. 18.4 percent

d. 12 percent

Reference no: EM133018413

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