Why don’t we multiply the cost of preferred stock by 1 minus the tax rate, as we do for debt? 529 viewsJanuary 7, 2017 0 Darshita6.14K January 7, 2017 0 Comments Why don’t we multiply the cost of preferred stock by 1 minus the tax rate, as we do for debt? 1 Answer ActiveVotedNewestOldest 0 Darshita6.14K Posted January 7, 2017 0 Comments Because dividends on preferred stock, unlike interest on debt, are paid out of after-tax income Register or Login
