A Corporation Has $5,000,000 of 8 Percent Preferred Stock Outstanding

question 96

Multiple Choice

A corporation has $5,000,000 of 8 percent preferred stock outstanding and a 21 percent tax rate.The after-tax cost of the preferred stock is ________.

• A)$506,329
• B)$1,904,762
• C)$666,667
• D)$400,000

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Definitions:

Administrative Rule

A regulation issued by government agencies that has the force of law, governing the implementation of specific statutes.

Consumer Law

A statute or administrative rule serving to protect consumer interests.

Consumer Interests

The priorities and concerns of individuals in their role as consumers, focusing on the protection and promotion of their rights and well-being.

Consumer Product Safety Commission

The Consumer Product Safety Commission is a U.S. federal agency responsible for protecting the public from risks of injury or death associated with consumer products.