Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $6 and are currently

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Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $6 and are currently selling for $96 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?

4.82%

9.79%

6.58%

7.31%

Posted Date: Jun 25, 2024 04:37 PM

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Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $6 and are currently

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