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There is a selling cost of 330 what is the after-tax cost

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A firm is paying an annual dividend of $3.36 for its preferred stock which is selling for $62.70. There is a selling cost of $3.30. What is the after-tax cost of preferred stock if the firm's tax rate is 33%? if the firm's tax rate is 33%?

A) 5.66%
B) 4.09%
C) 3.79%

Reference no: EM13568546

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