Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $7 and are currently selling for $84 a share.

What is the after-tax cost of preferred stock if the flotation cost for new shares is 4% and Builtrite is in the 34% marginal tax bracket?

O 5.13%

O 7.76%

O 8.68%

O 5.73%

Bultrite Auto has preferred stock shares outstanding that pay an annual dividend of \$7 and are currently selling for $84 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares is 4% and Builtrite is in the 34% marginal tax bracket? 5.13 7.768 8.68% 5.73