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Grill Works and More has 8 percent preferred stock outstanding having face value of 100 that is currently selling for 49 a share. The market rate of return is 14 percent and the firm's tax rate is 37 percent. What is the firm's cost of preferred stock?

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56. Grill Works and More has 8 percent preferred stock outstanding that is currently selling for $49 a share. The market rate of return is 14 percent and the firm's tax rate is 37percent. What is the firm's cost of preferred stock? Rp= (0.08 $100)/$49 = 16.33 percentAACSB: AnalyticBloom's: ApplicationDifficulty: BasicLearning Objective: 14-2Section: 14.3Topic: Cost of preferred

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Grill Works and More has 8 percent preferred stock outstanding having face value of 100 that is currently selling for 49 a share. The market rate of return is 14 percent and the firm's tax rate is 37 percent. What is the firm's cost of preferred stock?​

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Grill Works and More has 8 percent preferred stock outstanding having face value of 100 that is currently selling for 49 a share. The market rate of return is 14 percent and the firm's tax rate is 37 percent. What is the firm's cost of preferred stock?