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preferred stocks and debt The treasurer of Riley Coal Co is asked to compute the cost of fixed Income securities for her corporation Even before
preferred stocks and debt The treasurer of Riley Coal Co is asked to compute the cost of fixed Income securities for her corporation Even before making the ca preferred stock tions, she sure the cost of a percent than that Debt can be issued at a yield of 11.0 percent, and the corporate tax rate is 20 percent. Preferred stock will be priced at $60 and pay a dividend of 56 40. The foon cost on the preferred to a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places Aftertax cost of debt b. Compute the aftertax cost of preferred stock. (Do not round intermediate calculations. Input your answers ounded to 2 decimal places.) Aftertax cost of preferred stock s C. Based on the facts given above is the treasurer correct? Yes the treasuror is correct No the treasure is incorrect
preferred stocks and debt
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