W Which of the following statement is correct? O Commercial paper consists of secured notes issued by small corporations for periods up to 180 days. The cost of trade credit is calculated by dividing the amount of the discount offered by the supplier by the amount the buyer owes. For unsecured short-term loans, lenders require long-term assets as a collateral because they are generally more liquid than short-term assets and are easier to convert to cash if the borrower defaults on the loan. O All the answers are incorrect. O Only smallest corporations sell commercial paper because only they can attract investors who will lend them money for higher rates than banks charge for short-term loans. Question 31 If the dividends paid on a preferred stock issue are $6.5 per share and the price of the stock after subtracting flotation costs is $22, calculate cost of preferred stock. 26.81% 32.83% 16.41% 29.55% 1 pts none of the answers is correct