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Author Question: What is the after-tax cost of preferred stock if its price is $25 per share and it pays a $1 per ... (Read 52 times)

rosent76

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on: Apr 25, 2021

Question 1

The cost of preferred stock is computed the same as
◦ the pre-tax cost of debt.
◦ an annuity.
◦ the after-tax cost of debt.
◦ a perpetuity.
◦ an irregular growth common stock.

Question 2

What is the after-tax cost of preferred stock if its price is $25 per share and it pays a $1 per share dividend? Assume the firm's marginal tax rate is 25% and there are no flotation costs.
◦ 5%
◦ 9%
◦ 3%
◦ 4%
◦ 1%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by rosent76 on Apr 25, 2021

kbennett34

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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rosent76

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Reply 2 on: Apr 25, 2021
Excellent

xiaomengxian

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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