What is after-tax cost of preferred stock for fjord

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Reference no: EM131593926

A firm's preferred stock pays an annual dividend of $8, and the stock sells for $77. Flotation costs for new issuances of preferred stock are 4% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 39%? (Round your answer to 2 decimal places.)

Reference no: EM131593926

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