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Calculate the after-tax cost of preferred stock for Marvell Corporation, which is planning to sell $580 million of $6 cumulative preferred stock to the public

Calculate the after-tax cost of preferred stock for Marvell Corporation, which is planning to sell $580 million of $6 cumulative preferred stock to the public at a price of $40 per share. Flotation costs are $4 per share. Marvell has a marginal income tax rate of 35%. A)15.00% B)9.75% C)10.83% D)16.67%

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