Suppose a company can issue new preferred shares with a par value of $100 at $103. Assume a tax rate of 30 percent. This preferred stock issue has annual dividends of 7 percent. What is the estimate of the company's cost of preferred equity?

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The Answer of Suppose a company can issue new preferred shares with a par value of $100 at $103. Assume a tax rate of 30 percent. This preferred stock issue has annual dividends of 7 percent. What is the estimate of the company's cost of preferred equity?

Suppose a Company Can Issue New Preferred Shares with a Par