[Solved] Fern Has Preferred Stock Selling for 95 Percent of Par

Question 26
Multiple Choice

Fern has preferred stock selling for 95 percent of par that pays an 8 percent annual coupon. What would be Fern's component cost of preferred stock?

A)7.60 percent
B)8.00 percent
C)8.42 percent
D)9.00 percent

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