What is the after-tax cost of preferred stock that pays a


What is the after-tax cost of preferred stock that pays a 12% dividend and sells at par if the firm's tax rate is 35%?

a. 7.8%
b. 8.5%
c. 12.0%
d. 16.2%

 

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Finance Basics: What is the after-tax cost of preferred stock that pays a
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