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Deep Dive Salvage has preferred stock outstanding. What is the after-tax cost if the par value of the preferred share is $100 and the annual
Deep Dive Salvage has preferred stock outstanding. What is the after-tax cost if the par value of the preferred share is $100 and the annual dividend is $4.50. The preferred shares have no stated maturity. The current market price of the share is $50. Assume that the corporate tax rate is 30%. 9% 11% 12% 10%
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