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Donaldson Corp

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Donaldson Corp. has preferred stock outstanding that is currently selling for $113,33 per share and pays a perpetual dividend of $8.50. What is the firm's cost of preferred stock? Select one: a. 5.0% b. 6.1% c. 8.8% d. 7.5% e. 4.2% 9 Why is the cost of equity from new issues of common stock higher than the cost of equity from retained earnings? ed out of Select one: a. Because of the high opportunity costs associated with new issues of common stock b. Because of the high opportunity costs associated with retained earnings C. Because of the flotation costs with new issues of common stock d. Because the Securities & Exchange Commission levies penalties on firms that must issue new shares of common stock