Calculate the after tax cost of preferred stock for ohio, Financial Management

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Calculate the after tax cost of preferred stock for ohio

Calculate the after tax cost of preferred stock for Ohio Valley Power Company, which is planning to seel $100 million of $3.25 cumulative preferred stock to the public at a price of $25 per share. Flotation costs are $1.00 per share. Ohio Valley has a marginal income tax rate of 40%.

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Financial Management: Calculate the after tax cost of preferred stock for ohio

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