A firm has

$2

million market value and it sells preferred stock with a par value of

$100

. If the coupon rate on the preferred stock is

8%

and the preferred stock trades at

$89

, what is the cost of preferred stock financing?\ A.

9.44%

\ B.

8.99%

\ C.

8.54%

\ D.

9.89%

A firm has $2 million market value and it sells preferred stock with a par value of $100. If the coupon rate on the preferred stock is 8% and the preferred stock trades at $89, what is the cost of preferred stock financing? A. 9.44% B. 8.99% C. 8.54% D. 9.89%