Cost of preferred stock to a company?

The following information applies to a company’s preferred stock:
o Current price $47.00 per share
o Par value $50.00 per share
o Annual dividend $3.50 per share
If the company’s marginal corporate excise rate is 34 percent, the after-tax cost of preferred
stock is closest to:?
A. 4.62%.
B. 4.91%.
C. 7.00%.
D. 7.45%.

I own approximately 2,000 dollars that I would similar to to invest. What is the best investment?

---

Answers:   D - 7.45%

There's no tax benefit to preferred stock.

So:
3.50/47 = 7.446%

Resolved Questions:

Can you trade comodities such as Gold, Silver, Oil, etc using an online brokerage and a Roth IRA?

How to obtain 'safekeeping receipt' from a mound against a commercial propert worth of 150 crores within india?

Percentage question/10 comfortable points for those who can do math!?

What is this loophole that congress is working on taking out of commodities trading that I hear at Bloomberg?

Looking for a (bbq-chicken) speedy food restaurant investors who desires to invest contained by Cambodia?