Cost of preferred stock = 2.65/57-3.3 Cost of preferred stock = 0.0493 or 4.93% After tax cost of preferred stock = Cost of preferred stock x (1-Tax rate) After tax cost of preferred stock = 4.93% x (79%) After tax cost of preferred stock = 3.89% I 5. Firm X has a tax rate of 21%. The price of its new preferred stock is $75 and its flotation cost is $3.15. The cost of new preferred stock is 8%. What is the firm's dividend? (6point) A) $7.18 B) $5.75 C) $7.56 D) $4.03 6. Using the constant growth model, a firm's expected dividend yield is 4% of the stock price, and its growth rate is 5%. If the tax rate is 21%, what is the firm's cost of equity? (4point) A) 10% B) 6.65%