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Question 4 (2 points) CTL Corporation has 30% of its financing in preferred shares. The shares are currently trading at a market price of $55.
Question 4 (2 points) CTL Corporation has 30% of its financing in preferred shares. The shares are currently trading at a market price of $55. The book value of the shares is $60, and they pay a dividend of $4.05. CTL's corporate tax rate is 35%. What is the cost of preferred stock to the company? 6.75% 4.39% 7.36% 4.79%
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