Torch industries can issue perpetual preferred stock at a price of $71.00 a share. the stock would pay a constant annual dividend of $6.50 a share. what is the company's cost of preferred stock, rp? round your answer to two decimal places.

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.