Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $9 per share, and sells for $50. The corporate tax rate is 21%. What is the percentage cost of the preferred stock? (Enter your answer as a whole percent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
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Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $9 per share, and sells for $50. The corporate tax rate is 21%. What is the percentage cost of the preferred stock? (Enter your answer as a whole percent.)

 

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