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Business, 23.07.2020 20:01 CheddaDsk

A company’s perpetual preferred stock has a par value of $15 million and pays a dividend rate of 7.5% per year. The company’s tax rate is 42%. If the preferred stock’s market value is $14.1 million, what is the company’s annual cost of preferred stock financing? Question 2 options: 1) 7.98% 2) 8.25% 3) 6.89% 4) 7.64% 5) 7.23%

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A company’s perpetual preferred stock has a par value of $15 million and pays a dividend rate of 7.5...
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