What is the after-tax cost of preferred stock

Reference no: EM13290279

What is the after-tax cost of preferred stock that sells for $10.00 per share and offers a $1.20 dividend when the tax rate is 35%?

a. 4.20%
b. 7.80%
c. 8.33%
d. 12.00%

Reference no: EM13290279

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