Wilson's Clothing has 8 % preferred stock outstanding which is selling for $58 a share. What is Wilson's cost of preferred stock if the tax rate is 34 %?

A) 8.34 %
B) 9.10 %
C) 12.12 %
D) 12.64 %
E) 13.79 %

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Selling

The process or act of offering goods or services in exchange for money or other compensation.

Tax Rate

The percentage at which an individual or corporation is taxed, with the rate often varying based on income or profit levels.