Firm X has a tax rate of 30%. The price of its new preferred stock is $63 and its flotation cost is...

Question

Firm X has a tax rate of 30%. The price of its new preferred stock is $63 and its flotation cost is $3.15. The cost of new preferred stock is 12%. What is the firm's dividend? Question 9 options:
A) $7.18
B) $5.03
C) $7.56
D) none of the above.

Robert · Accepted Answer

Question: 
 
Firm X has a tax rate of 30%. The price of its new preferred stock is $63 and its flotation cost is 
$3.15. The cost of new preferred stock is 12%. What is the firm's dividend? Question 9 options: 
A) $7.18 
B) $5.03 
C) $7.56 
D) none of the above. 
Solution:

Firm X has a tax rate of 30%. The price of its new preferred stock is $63 and its flotation cost is $3.15. The cost of new preferred stock is 12%. What is the firm's dividend? Question 9 options: A)...

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