Question: 32. A company recently issued 9% preferred stock. The preferred stock sold for $40 a share with a par of $20. The cost of issuing

32. A company recently issued 9% preferred stock. The preferred stock sold for $40 a share with a par of $20. The cost of issuing the stock was $5 a share. What is the company’s cost of preferred stock?

a. 4.5%

b. 5.1%

c. 9.0%

d. 10.3%

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