Fern has preferred stock selling for 95 percent of par that


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?

7.60%
8.00%
8.42%
9.00%

 

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Finance Basics: Fern has preferred stock selling for 95 percent of par that
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