The preferred stock of Nadine Fashions pays an annual dividend of $2.3 a share and sells for $45 a s

The preferred stock of Nadine Fashions pays an annual dividend of $2.3 a share and sells for $45 a share. The tax rate is 34 percent. What is the firm’s cost of preferred stock?Brown Street Grocers has a cost of equity of 10.68 percent, a pre-tax cost of debt of 5.4 percent, and a tax rate of 33 percent. What is the firm’s weighted average cost of capital if the debt-equity ratio is 0.6?Brown Street Grocers has a cost of equity of 10.68 percent, a pre-tax cost of debt of 5.4 percent, and a tax rate of 33 percent. What is the firm’s weighted average cost of capital if the debt-equity ratio is 0.6?

 

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