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Question:

The preferred stock of Nadine Fashions pays an annual dividend of $2.25 a share and sells for $38.75 a share. The tax rate is 32 percent.

Required:

Question: What is the firm's cost of preferred stock?

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148651

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