Rose Has Preferred Stock Selling for 99 Percent of Par

question 31

Multiple Choice

Rose has preferred stock selling for 99 percent of par that pays a 9 percent annual coupon. What would be Rose's component cost of preferred stock?

• A) 4.55 percent
• B) 8.91 percent
• C) 9.00 percent
• D) 9.09 percent

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