Question
A firm is paying an annual dividend of $4.00 for its preferred stock which is selling for $70.00. There is a selling cost of $2.00.
A firm is paying an annual dividend of $4.00 for its preferred stock which is selling for $70.00. There is a selling cost of $2.00. What is the after-tax cost of preferred stock if the firm's tax rate is 35%?
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8.03%
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4.53%
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5.88%
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7.33%
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
