The 7.5 percent preferred stock of Rock Bottom Floors is selling for $60 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) 8.13 percent
C) 12.50 percent
D) 13.79 percent
E) 14.14 percent
Correct Answer:
Verified
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