Grill Works and More has 7 percent preferred stock outstanding that is currently selling for $49 a share. The market rate of return is 14 percent and the firm's tax rate is 37 percent. What is the firm's cost of preferred stock?

Respuesta :

Answer: 14.29%

Explanation:

percentRp= (0.07 × $100)/$49 = 14.29

ACCESS MORE
EDU ACCESS