For an unlevered firm, the cost of equity, RE, is equal to the required return on the firm's assets, RA

Group of answer choices

False

True

The most recent data for Kinder Morgan Series A Preferred stock(KMI-A) had annualized dividend of $4.875, the last market price for Kinder Morgan(KMI) common stock was $21.75 and the last price for KMI-A was $48.82. Using your data what is the yield(return) on KMI series A?

Group of answer choices

4.18%

22.41%

10.16%

9.99%