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A firm is paying an annual dividend of $6.00 for its preferred stock which is selling for $62.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 38%? (Round your answer to 2 decimal places.)

12.32%

11.62%

10.17%

8.82%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91621150

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