What is firm cost of preferred stock

Assignment Help Financial Management

Reference no: EM131349180

Grill Works and More has 5 percent preferred stock outstanding that is currently selling for $57 a share. The stock's par value is $100. The market rate of return is 7 percent and the firm's tax rate is 34 percent. What is the firm's cost of preferred stock?

8.77 percent

7.97 percent

5.79 percent

7.21 percent

5.26 percent

Reference no: EM131349180

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