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If a firm's before-tax cost of common equity is 6.5% and the firm has a 20% marginal tax rate, what is the firm's after-tax cost

If a firm's before-tax cost of common equity is 6.5% and the firm has a 20% marginal tax rate, what is the firm's after-tax cost of preferred stock?

		6.5%
		5.2%
		10.0%
		None of above is correct.

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