Melba's Toast Has a Preferred Share Issue Outstanding with a Current

question 64

Multiple Choice

Melba's Toast has a preferred share issue outstanding with a current price of $19.50. The firm is expected to pay a dividend of $2.34 per share a year from today. What is the firm's
Cost of preferred equity?

• A) 11.50%
• B) 11.75%
• C) 12.00%
• D) 12.25%

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