The 7 percent preferred stock of Midwest Muffler and Towing is selling for $65 per share....

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The 7 percent preferred stock of Midwest Muffler and Towing is selling for $65 per share....

The 7 percent preferred stock of Midwest Muffler and Towing is selling for $65 per share. What is the firm's cost of preferred stock if the tax rate is 21 percent and the par value per share is $100?

12.79 percent
11.21 percent
11.46 percent
10.55 percent
10.77 percent

business finance

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Answer 1

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cost of preferred stock = dividend + price 10.77% 17+65]

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The 7 percent preferred stock of Midwest Muffler and Towing is selling for $65 per share....

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The 7 percent preferred stock of Midwest Muffler and Towing is selling for $65 per share....

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