Multiple Choice
A firm is paying an annual dividend of $2.65 for its preferred stock that is selling for $57.00. There is a selling cost of $3.30. What is the after-tax cost of preferred stock if the firm's tax rate is 21%?
A) 3.30%
B) 4.93%
C) 5.79%
D) 6.11%
Correct Answer:
Verified
Correct Answer:
Verified
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