Calculate the after-tax cost of preferred stock


Calculate the after-tax cost of preferred stock for Bozeman-Western Airlines, Inc., which is planning to sell $10 million of $4.50 cumulative preferred stock to the public at a price of $48 a share. The company has a marginal tax rate of 40 percent.

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Finance Basics: Calculate the after-tax cost of preferred stock
Reference No:- TGS0679899

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