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Jose's Cantinas Incorporated Plans to Issue Preferred Stock at a Price

Question 11

Multiple Choice

Jose's Cantinas Incorporated plans to issue preferred stock at a price of $48 per share. The annual dividend will be $5.10 per share and issuance costs are expected to be $3.00 per share. What is the cost of raising funds with preferred stock for Jose's?


A) 10.85%
B) 10.20%
C) 10.63%
D) 11.33%

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