Cost of Preferred Stock lax adjustment is made when caiculating Fp because preferred dividends tax deductible; so tax swings are associated with preferred stock Quantitative Probiem: Barton industries can issue perpetual preferred stock at a price of $54 per share. The stock would pay a constant annuat dividend of $3.72 per share. If the firm's marginal tax rate is 25%, what is the cempany's cost of preferred stock? Hound your answer to two decimal places