Answer:
correct option is 9.4%
Explanation:
given data
amount = $100
rate = 8%
currently selling = $85
solution
we get here cost of preferred equity that is express as
cost of preferred equity = [tex]\frac{amount*rate}{selling\ price}[/tex] ..............1
put here value we get
cost of preferred equity = [tex]\frac{100*0.08}{85}[/tex]
cost of preferred equity = [tex]\frac{8}{85}[/tex]
cost of preferred equity = 9.4%
so correct option is 9.4%
