The 7.5 percent preferred stock of Home Town Brewers is selling for $45 a share.What is the firm's cost of preferred stock if the tax rate is 35 percent and the par value per share is $100?
A) 7.50 percent
B) 15.92 percent
C) 16.17 percent
D) 16.52 percent
E) 16.67 percent
Correct Answer:
Verified
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