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tax deductible; so thtax savings are associated with preferred sto Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $56 per

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tax deductible; so thtax savings are associated with preferred sto Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $56 per share. The stock would pay a constant annual dividend of $3.00 per share. firm's marginal tax rate is 40%, what is the company's cost of preferred stock? Round your answer to 2 decimal places. 1

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