Maloney, Inc.’s 1,000 par value preferred stock paid its 100 per share annual dividend on April 4 of the current year. The preferred stock’s current market price is 960 a share on the date of the dividend distribution. Maloney’s marginal tax rate (combined federal and state) is 40%, and the firm plans to maintain its current capital structure relationship. The component cost of preferred stock to Maloney would be closest to