Question
A firm's preferred stock pays an annual dividend of $8, and the stock sells for $73. Flotation costs for new issuances of preferred stock are
| A firm's preferred stock pays an annual dividend of $8, and the stock sells for $73. Flotation costs for new issuances of preferred stock are 3% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 34%?(Round your answer to 2 decimal places.) |
a. 11.30b. 9.95c. 13.45d. 12.75
which one is it?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
