Galhadi Telecommunications Ltd has 15 million 7% preferred shares outstanding with a nominal value of $90, a market price of $80 and a term of five years. Galhadi has a tax rate of 31%. Using trial values of 5% and 10%, what is the company's after-tax cost of preferred share capital?

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The Answer of Galhadi Telecommunications Ltd has 15 million 7% preferred shares outstanding with a nominal value of $90, a market price of $80 and a term of five years. Galhadi has a tax rate of 31%. Using trial values of 5% and 10%, what is the company's after-tax cost of preferred share capital?

Galhadi Telecommunications Ltd Has 15 Million 7% Preferred Shares Outstanding