What is the after-tax cost of new preferred shares

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Reference no: EM132061009

Kresler Autos has preferred shares outstanding that pay annual dividends of $13, and the current price of the shares is $115. What is the after-tax cost of new preferred shares for Kresler if the flotation (issuance) costs for preferred shares are 5 percent? (Round intermediate calculations to 3 decimal places, e.g. 1.251 and final answer to 1 decimal place, e.g. 15.2%.)

After-tax cost of preferred shares %

Reference no: EM132061009

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