A Firm Has Determined It Can Issue Preferred Stock at $115

question 66

Multiple Choice

A firm has determined it can issue preferred stock at $115 per share par value. The stock will pay a $12 annual dividend. The cost of issuing and selling the stock is $3 per share. The cost of the preferred stock is ________.

• A) 6.4 percent.
• B) 10.4 percent.
• C) 10.7 percent.
• D) 12 percent.

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Definitions:

Need-Satisfaction Method

A sales approach that focuses on identifying and fulfilling the specific needs or desires of a customer through the product or service offered.

Formula Sales Method

A structured approach to selling that follows a specific set of steps or formulas to achieve sales success.

Problem-Solution Presentation

A sales technique that identifies a specific problem faced by the potential customer and then presents the product or service as the solution.

Need-Fulfillment

A marketing strategy that focuses on identifying and addressing the specific needs of customers to drive sales and ensure customer satisfaction.