ОА. Teri's Tires has 7 percent preferred stock outstanding that sells for $68 a share. What...

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Question

Answer 1

Answer #1

c. 10.29 %

calculation: (assume Par value = $100)

Cost of preferred stock = preferred stock (dividend) / preferred stock price

= 7 / 68 = 10.29%

Cost of preferred stock = 10.29%

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Answer 2

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