What is maskatis cost of preferred stock

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Question: SAA's key rival, Maskati Air has a 7 percent preferred stock outstanding that is currently selling for $48 a share. The preferred stock has a $100 par value. The market rate of return is 10 percent and the firm's tax rate is 34 percent. GST is 13%. What is Maskati's cost of preferred stock?

Reference no: EM133433618

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