Answer:
The company's cost of preferred stock is 8.45%
Explanation:
The cost of preferred is the cost implication to the entity making use of preferred stock finance which is similar to interest cost on debt financing.
Cost of preferred stock=dividend on preferred stock/market price of preferred stock.
dividend on preferred stock is $6.00
market price of preferred stock. is $71
Cost of preferred stock=$6.00/$71
cost of preferred stock=8.45%
