Question
8. As CFO of N Corporation, you observe the preferred stock that N Corp issued 75 years ago at a par value of $100 is
8. As CFO of N Corporation, you observe the preferred stock that N Corp issued 75 years ago at a par value of $100 is now selling for $52. In addition, this preferred stock now pays a dividend of $3.72. N Corp is in the 29% tax bracket and has a credit rating of BBB. What is the after-tax cost of existing preferred stock for N Corp? (round at 2 decimal places)
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Get StartedRecommended Textbook for
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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