A corporation has $5,000,000 of 8 percent preferred stock outstanding

A corporation has $5,000,000 of 8 percent preferred stock outstanding and a 40 percent tax rate. The after-tax cost of the preferred stock is ________.

A) $400,000
B) $240,000
C) $666,667
D) $160,000

 

 

ANSWER

A

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00