What Is the Cost of a Preferred Stock with a $100

question 79

Multiple Choice

What is the cost of a preferred stock with a $100 par value that pays a $9.60 dividend per year? The security has a flotation cost of $3.37 and will be retired at its par value in 20 years.

• A) 9.6%
• B) 9.9%
• C) 10.0%
• D) 10.6%

---

Definitions:

Immune Activity

The actions and processes through which the immune system identifies and attacks pathogens, damaged cells, and other potentially harmful foreign bodies.

Stress

A physical or emotional reaction to demanding or threatening situations, often leading to a feeling of strain or tension.

Health-impairing Habits

Practices or patterns of behavior that negatively affect physical or psychological health, such as smoking or excessive alcohol consumption.

Self-destructive Behaviors

Actions taken by individuals that are harmful to themselves, often as a way of coping with negative emotions or situations.