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Question 12 (1 point) A companys perpetual preferred stock currently trades at $87.50 per share, and it pays an $8.00 annual dividend. If the company

Question 12 (1 point)

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A companys perpetual preferred stock currently trades at $87.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firms cost of preferred stock?

Question 12 options:

	8.25%
	9.14%
	8.69%
	9.62%

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