Question: Samuelson Plastics has 7.5 percent, $100 par value preferred stock outstanding. Currently, this stock has a market value per share of $54 and a book

Samuelson Plastics has 7.5 percent, $100 par value preferred stock outstanding. Currently, this stock has a market value per share of $54 and a book value per share of $38. What is the cost of preferred stock?

A. 7.50 percent

B. 13.89 percent

C. 14.42 percent

D. 19.23 percent

E. 19.74 percent

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