A company’s perpetual preferred stock has a par value of $15 million and pays a dividend rate of 7.5% per year. The company’s tax rate is 42%. If the preferred stock’s market value is $14.1 million, what is the company’s annual cost of preferred stock financing? Question 2 options: 1) 7.98% 2) 8.25% 3) 6.89% 4) 7.64% 5) 7.23%

The company is experiencing an increase in competition, and at the same time they are building more production facilities in southeast asia. in this scenario, the top management team is most likely to multiple choice increase the cost of their products. restructure to reflect a more bureaucratic, stable organization. pull decision-making responsibility from low-level management, taking it on themselves. give lower-level managers the authority to make decisions to benefit the firm. rid themselves of all buffering product.