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Lino Inc. preferred stock pays $ 8 . 7 5 each year in dividends. If your expected rate of return is 7 . 2 5

Lino Inc. preferred stock pays $8.75 each year in dividends. If your expected rate of return is 7.25 percent, how much you will be willing to pay for this stock? If Lino Inc. pays 7 percent nominal interest rate and their tax rate is 20 percent, what is its after tax cost of debt?

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