The preferred stock of Dolphin Pools pays an annual dividend of $6.25 a share and sells for $42 a share.The tax rate is 35 percent.What is the firm's cost of preferred stock?
A) 9.67 percent
B) 14.88 percent
C) 15.07 percent
D) 15.59 percent
E) 16.47 percent
Correct Answer:
Verified
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