Marme Inc Has Preferred Stock Selling for 137 Percent of Par

question 107

Multiple Choice

Marme Inc. has preferred stock selling for 137 percent of par that pays an 11 percent annual dividend. What would be Marme's component cost of preferred stock?

• A) 11.00 percent
• B) 8.03 percent
• C) 8.17 percent
• D) 10.16 percent

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