Question 3 (7 points) Your firm's preferred stock has a par value of $120 per share, and the preferred stock is currently trading at $140 per share. The preferred stock pays a dividend that is 4% of the par value. What is the cost of preferred stock? 4.00% 3.43% 4.00 None of the Above Question 4 (6.5 points) Retained earnings is part of the common stock of the firm. True False Question 5 (6.5 points) According to the pecking order theory of capital structure, firms will usually go to which funding source first? F F7 FB