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Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $8 and are currently selling for $115 a share. What is the

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Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $8 and are currently selling for $115 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares is 5% and Builtrite is in the 34% marginal tax bracket? 4.83% 5.46% 32% 9.79% O 7

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