a firm with a 40% tax rate has $10 million of preferred shares outstanding (each share has $100 par value) that pay a dividend of 10% and are callable at a premium of 10%. Issuing and underwriting costs of $ 800,000 would be incurred. 1, what would be the market price of preferred share if dividend rate drops to 8%. (if it were non-redeemableon-callable) 2, what level would the dividend rate have to drop to make refinancing attractive. 3, assume dividend yield dropped to 8%. How many years will it take to recoup the initial refinancing costs? 4, Assume that the company chooses to call the 10% issue and refinance with new share at 8%. What is the maximum number of new preferred share each new share has a $100 par value) the firm can issue without increasing total annual dividend payments from their current level at 10%? Please answer this question correctly. I have checked the similar question look like this but the answer was not appropriate. Thanks a firm with a 40% tax rate has $10 million of preferred shares outstanding (each share has $100 par value) that pay a dividend of 10% and are callable at a premium of 10%. Issuing and underwriting costs of $ 800,000 would be incurred. 1, what would be the market price of preferred share if dividend rate drops to 8%. (if it were non-redeemableon-callable) 2, what level would the dividend rate have to drop to make refinancing attractive. 3, assume dividend yield dropped to 8%. How many years will it take to recoup the initial refinancing costs? 4, Assume that the company chooses to call the 10% issue and refinance with new share at 8%. What is the maximum number of new preferred share each new share has a $100 par value) the firm can issue without increasing total annual dividend payments from their current level at 10%? Please answer this question correctly. I have checked the similar question look like this but the answer was not appropriate. Thanks