A firm’s preferred stock pays an annual dividend of $2.50 and the stock sells for $65.

Published by admin at July 24, 2023

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A firm’s preferred stock pays an annual dividend of $2.50 and the stock sells for $65. Flotation costs for new insurances of preferred stock are 4.5% of the stock value. What is the after tax cost of preferred stock if the firm’s tax rate is 30%

A firm’s preferred stock pays an annual dividend of $2.50 and the stock sells for $65.

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