Why don’t we multiply the cost of preferred stock by 1 minus the tax rate, as we do for debt 560 viewsJanuary 1, 2017 0 Darshita6.14K January 1, 2017 0 Comments Why don’t we multiply the cost of preferred stock by 1 minus the tax rate, as we do for debt 0 Answers ActiveVotedNewestOldest 0 Darshita6.14K Posted January 1, 2017 0 Comments Because dividends on preferred stock, unlike interest on debt, are paid out of after-tax income You are viewing 1 out of 0 answers, click here to view all answers. Register or Login
