Question
Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $8 per share, and sells for $40. The corporate tax rate is 35%.
Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $8 per share, and sells for $40. The corporate tax rate is 35%. What is the percentage cost of the preferred stock? (Enter your answer as a whole percent.)
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
