Fly Dubai has issued 10 percent preferred stock, which sold for $100 per share par value. The cost of issuing and selling the stock was $2 per share. The firm's marginal tax rate is 40 percent. The cost of the preferred stock is: a. 3.9 percent b. 9.8 percent C. 10.2 percent d. 6.1 percent Arabia Company has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year. The growth rate in dividends has been 5 percent. The cost of the firm's common stock equity is a. 10 percent b. 8 percent c. 5 percent d. 13 percent