A company's perpetual preferred stock currently sells for P115.00 per share, and it pays an P8.00 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? A. 7.32% B. 5.93% C. 6.08% D. 6.00% E. 7.18% Show solutions please.
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