Attempts $$ Keep the Highest $/4$

$3.$ The Cost of Capital: Cost of Preferred

Cost of Preferred Stock

$$ tax adjustment is made when calculating $r_p$ because preferred dividends $$ are tax deductible; so: $$ no $$ tax savings are associated with preferred stock.

Quantitative Problem: Barton Barton Ind of prefin pref ferred red stoc $q,$

$25\%,$ what is the company's cost of preferred stock? Round your answer to two decimal places.

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