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What is the after-tax cost of the following preferred equity? The par value of the preferred share is $100 and the annual dividend is 6%.
What is the after-tax cost of the following preferred equity? The par value of the preferred share is $100 and the annual dividend is 6%. The preferred shares have no stated maturity. The current market price of the share is $55. Assume that the corporate tax rate is 39%. The after-tax cost of the preferred equity is %. (Round to two decimal places.)
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