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Teri's Tires Has 7 Percent Preferred Stock Outstanding That Sells

Question 39

Multiple Choice

Teri's Tires has 7 percent preferred stock outstanding that sells for $68 a share.The preferred stock has a $100 par value.What is Teri's cost of preferred stock?


A) 9.52 percent
B) 9.71 percent
C) 10.29 percent
D) 10.78 percent
E) 11.76 percent

Correct Answer:

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