Which of the following profitability ratios is based on profits before financing costs or taxes? select one: @a, return on equity O b. profit margin on sales c. return on total assets O d. basic earning power The Dividend Model may be used to value preferred stock by: Select one: a. setting the dividend equal to zero. O b. setting the required rate of return in the model equal to the Treasury security yield. O c setting the future growth rate of dividends equal to zero. d. All of these are correct. A corporation can sell new shares of preferred stock to the public at a price of 6% below their $100 face value. Investment banks will then retain $4 per share for flotation fees. The preferred pays an annual dividend of 5% of face value. The company's earnings are taxed at a 40% rate. Determine the after tax cost of funds raised from the sale of preferred stock to the nearest tenth of a percent Select one: a. 5.3% b. 5.696 C. 3.796 O d. 3.396