FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com - Page 6

Which of the following statements is CORRECT? Assume a company's target capital structure is 50% debt and 50% common equity. • Question 9 A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? • Question 10 Which of the following statements is CORRECT? • Question 11 Which of the following statements is CORRECT? • Question 12