Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $2 and are currently selling for $27 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares, which are expected to sell for $25, 6% and Builtrite is in the 34% marginal tax bracket? O 7.76% O 7.88% O 8.51% 5.12%

Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $2 and are currently selling for $27 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares, which are expected to sell for $25 6\% and Builtrite is in the 34% marginal tax bracket? 7.76% 7.88% 8.51% 5,12%