The? after-tax cost of the preferred equity

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Reference no: EM131916190

What is the? after-tax cost of the following preferred? equity? The par value of the preferred share is $100 and the annual dividend is 5?%. The preferred shares have no stated maturity. The current market price of the share is $75. Assume that the corporate tax rate is 42?%. The? after-tax cost of the preferred equity is __?%. (Round to two decimal? places.)

Reference no: EM131916190

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