What is the after tax cost of preferred stock

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Question: Maverick's Toys recently issued preferred stock at $50 per share. The stock pays a $2.50 dividend annually. What is the firm's cost of preferred stock? What is the after tax cost of preferred stock if the firm is in the 40% tax bracket? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131996232

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