What is the pretax and after tax cost of preferred stock

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Reference no: EM132051039

Davis has 1,000,000 shares of preferred stock with a par value of $25 per share. The preferred stock pays an annual dividend of $2.75. The preferred stock is currently selling in the market for $25.50 per share. What is the pretax and after tax cost of the preferred stock? Please show each step of how you came to the solution.

Reference no: EM132051039

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