As CFO of N Corporation, you observe the preferred stock that N Corp issued 75 years ago at a par value of $100 is now selling for $52. In addition, this preferred stock now pays a dividend of $3.72. N Corp is in the 29% tax bracket and has a credit rating of BBB. 

What is the after-tax cost of existing preferred stock for N Corp? (round at 2 decimal places)

Answer rating: 100% (QA)

To calculate the aftertax cost of existing preferred stock for N Corp we need to consider the divide... View the full answer