Builtrite auto has preferred stock shares outstanding

Reference no: EM13844219

Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $8 and are currently selling for $86 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares is 5% and Builtrite is in the 34% marginal tax bracket?

4.82%

6.46%

7.31%

9.79%

Reference no: EM13844219

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