What is the after tax cost of existing preferred stock

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Reference no: EM131304073

As CFO of Mayknn Corporation you observe the preferred stock that Mayknn issued 75 years ago at a par value of $100 is now selling for $64. In addition this preferred stock now pays a dividend of $1.28. Mayknn is in the 28% tax bracket and has a credit rating of BBB. What is the after tax cost of existing preferred stock for Mayknn? (round at 2 decimal places)

Reference no: EM131304073

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