What is the after-tax cost of preferred stock for fjord

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Reference no: EM131906028

Fjord Luxury Liners has preferred shares outstanding that pay an annual dividend equal to $7 per year. If the current price of Fjord preferred shares is $183.46, what is the after-tax cost of preferred stock for Fjord?

(Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

After-Tax cost of preferred stock ______ %

2. Kresler Autos has preferred shares outstanding that pay annual dividends of $5, and the current price of the shares is $95. What is the after-tax cost of new preferred shares for Kresler if the flotation (issuance) costs for preferred are 5 percent?

(Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

After-Tax cost of preferred shares _________ %

Reference no: EM131906028

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