What is the after-tax cost of preferred stock

Reference no: EM133269410

Question - Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $5 and are currently selling for $79 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares is 8% and Builtrite is in the 34% marginal tax bracket?

Reference no: EM133269410

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