The Financing Structure of Taylor Communications Is as Follows The Weighted Cost of Preferred Stock Is
A)

question 66

Multiple Choice

The financing structure of Taylor communications is as follows: $\begin{array}{lcc}\text {Source of Capital}&\text {Proportion of capital}&\text {Cost of Capital}\\\hline \text { Debt financing, } \$ 300,000 & 30 \% & 6 \% \\\text { Preferred stock, } \$ 100,000 & 10 \% & 8 \% \\\text { Common stock, } \$ 400,000 & 40 \% & 12 \% \\\text { Retained earnings, } \$ 200,000 & 20 \% & 12 \%\end{array}$


The weighted cost of preferred stock is

• A) .8%
• B) 4.8%
• C) 2.4%
• D) 9.8%

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