I believe the question you're asking is cut off...
It may be A but if it isn't I'm sorry
You can create a budget plan to cut out the risks of any unneeded financial expenses and to know that you should pay for things you need before you pay for unneeded items.
Answer: 16.3%
Explanation:
Given the details in the question, the cost of preferred capital can be calculated using the CAPM method.
Cost of preferred stock using the Capital Asset Pricing Model is:
= Risk free rate + Beta * ( Market return - Risk free rate)
= 4% + 1.23 * (14% - 4%)
= 16.3%
