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Dixon Corps preferred stock does not mature (it is a perpetual preferred). Each share of preferred stock pays a fixed dividend of $5.15 per year,
Dixon Corps preferred stock does not mature (it is a perpetual preferred). Each share of preferred stock pays a fixed dividend of $5.15 per year, and is currently selling for $62. Estimate Dixons marginal cost of preferred equity. Dixon faces a marginal tax rate of 30%.
10.10% | ||
12.04% | ||
5.81% | ||
7.07% | ||
8.31% |
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