Firm x has a tax rate of 30 the price of its new preferred


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?

A) $7.18

B) $5.03

C) $7.56

D) none of the above.

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Finance Basics: Firm x has a tax rate of 30 the price of its new preferred
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