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Topstone Industries' Preferred Stock Pays an Annual Dividend of $4

Question 174

Multiple Choice

Topstone Industries' preferred stock pays an annual dividend of $4 per share. When issued, the shares sold for their par value of $100 per share. What is the cost of preferred stock if the current
Price is $125 per share?


A) 3.2%
B) 3.7%
C) 4.0%
D) 4.7%
E) 31.3%

Correct Answer:

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