Calculating the cost of preferred stock


Samuelson Plastics has 7.5 percent preferred stock outstanding. Currently, this stock has a market value per share of $52 and a book value per share of $38. What is the cost of preferred stock?

19.74 percent

14.42 percent

19.29 percent

7.50 percent

13.88 percent

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Finance Basics: Calculating the cost of preferred stock
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