To Estimate the After-Tax Cost of Preferred Stock You Must

To estimate the after-tax cost of preferred stock you must:

A) multiply the cost of preferred by (1 - the tax rate) .
B) multiply the cost of preferred by (1 + the tax rate) .
C) multiply the cost of preferred by (the tax rate) .
D) None of the above because preferred dividend payments are not tax deductible for the firm.