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115.Mars Company plans to issue some P100 preferred stock with an 11%% dividend. The stock is selling on the market for P97, and Mars must

115.Mars Company plans to issue some P100 preferred stock with an 11%% dividend. The stock is selling on the market for P97, and Mars must pay flotation costs of 5%% of the market price. The company is under the 40%% corporate tax rate. The cost of preferred stock for Mars Company is A. 7.16% C. 11.346 6.809% D. 11.949% Pol Bobadilla

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