SandCorp. issued perpetual preferred stock with an 9% annual dividend. The stock currently yields 7.5%, and its par value is $125. What is the stock's value? O $127 O $150 O $104 O $139 O $167 Question 31 3 pts Which of the following statements is CORRECT? Higher flotation costs tend to reduce the cost of equity capital. If a company assig the same cost of capital to all of its projects regardless of each ct's risk, then the company is likely to reject some safe projects that it actually should accept and to accept some risky projects that it should reject. Since debt capital can cause a company to go bankrupt but equity capital cannot debt is riskier than equity, and thus the after-tax cost of debt is always greater than the cost of equity. The tax-adjusted cost of debt is always greater than the interest rate on debt, provided the company does in fact pay taxes. Because no flotation costs are required to obtain capital as retained earnings, the cost of retained earnings is generally lower than the after-tax cost of debt. Question 32 3 pts When working with the CAPM, which of the following factors can be determined with the most precision? The most appropriate risk-free rate, IRF- The beta coefficient of the market," which is the same as the beta of an average stock. The market risk premium (RPM). The expected rate of return on the market. IN- The beta coefficient, bs, of a relatively safe stock