Question
A companys perpetual preferred stock has a market value of $433.1million and pays a dividend rate of 9.25% per year. The companys tax rate is
A companys perpetual preferred stock has a market value of $433.1million and pays a dividend rate of 9.25% per year. The companys tax rate is 37%. If the preferred stocks par value is $450 million, what is the companys annual cost of preferred stock financing?
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Money And Capital Markets
Authors: Peter Rose, Milton Marquis
10th Edition
0077235800, 9780077235802
