With a Market Yield on Preferred Stock of 8% and a Proposed

question 124

Multiple Choice

With a market yield on preferred stock of 8% and a proposed annual dividend rate of 7.5% on a $100 par value, what is the component cost of capital for a new preferred stock issue if flotation costs of 16% are assumed?

• A)8.93%
• B)9.28%
• C)9.52%
• D)8.70%

---

Definitions:

Xylem

Vascular tissue that transports water and mineral solutes upward through the plant body; it contains vessel elements and tracheids.

Phloem

The vascular tissue in plants responsible for the transport of sugars and other metabolic products downward from the leaves.

Vascular Tissue

Transport tissue in plants, consisting of xylem and phloem.

Evolution of Plants

The evolution of plants describes the processes by which plant species have developed and diversified from ancestral forms over geological time periods.