Author Question: Higher the value of the times interest earned ratio, higher is the proportion of the firm's interest ... (Read 41 times)

audragclark · **on:** Jul 11, 2018

Higher the value of the times interest earned ratio, higher is the proportion of the firm's interest income compared to its contractual interest payments.

Indicate whether the statement is true or false

Question 2

A firm has issued preferred stock at its 125 per share par value. The stock will pay a 15 annual dividend. The cost of issuing and selling the stock was 4 per share. The cost of the preferred stock is ________.

A) 7.2 percent
B) 12 percent
C) 12.4 percent
D) 15 percent