# umdnj

A company has preferred stock that can be sold for \$21 per share. The preferred stock pays an annual dividend of 3.5% based on a par value of \$100. Flotation costs associated with the sale of preferred stock equal \$1.25 per share. The company's marginal tax rate is 35%. Therefore, the cost of preferred stock is: (Points : 1)

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3. 👁 467
1. 18.87

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