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Question
A firm has an issue of preferred stock that pays an annual dividend of $2.00 per share and currently is selling for $18.50 per share. Finally, the firm's marginal tax rate is 34%. This firm's cost of financing with new preferred stock is:A) 10%.
B) 7.13%.
C) 10.81%.
D) 6.6%.
Answer
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Related questions
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