21. Referring back to the original information in problem 20, if the yield on the $100,000 of...

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21. Referring back to the original information in problem 20, if the yield on the

$100,000 of preferred stock is still 7.5 percent and the borrowing cost remains 9.5 percent, but the corporate tax rate is only 20 percent, is this a feasible investment?

The tax rate on dividends is still 15 percent.

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Foundations Of Financial Management

ISBN: 9780073382388

13th Edition

Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen

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