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21-02-2024
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The cost of equity: Melba's Toast has a preferred share issue outstanding with a current price of $19.50. The firm is expected to pay a dividend of $2.34 per share a year from today. What is the firm's cost of preferred equity?
A) 11.50%
B) 11.75%
C) 12.00%
D) 12.25%

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