Question
1.XYZ Company has outstanding preferred stock that is selling for $67 and pays a dividend of $5/share every year.Assuming no flotation costs and a tax
1.XYZ Company has outstanding preferred stock that is selling for $67 and pays a dividend of $5/share every year.Assuming no flotation costs and a tax rate of 35%, what is the cost to XYZ Company of their preferred stock?
a.4.85%
b.7.46%
c.5.00%
d.3.25%
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Microeconomics: An Intuitive Approach With Calculus
Authors: Thomas Nechyba
2nd Edition
1305650468, 978-1305650466
