Q36. Braxton Energy is planning a new issue of $100 par preferred stock with a 12 percent dividend. The stock can be sold for $95 per share and the company must pay flotation costs of 5 percent of the market price. Assuming a marginal tax rate of 40 percent, Braxton Energy's after-tax component cost of preferred stock is closest to: A. 7.6% B. 8.0% C. 12.6% D. 13.3%
答案和详解如下：
Q36. D Study Session 11-48.g Dividend are not tax deductible. The after-tax component cost of preferred stock: (100*0.12)/[95-(95*0.5)]=0.133,or 13.3%
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发表于 2007-11-7 09:53
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