Is this a typo or am I way off base? On page 13 book 4 of Schweer, questions 2,3 and 4 all ask for the after-tax cost. But the answer are in pre tax, is this a error on there part?
2. the after- tax cost of perferred stock is closest to:
3. after- tax cost of retained earning
4. after -tax cost of internal equity
Shouldn't the rate be multiplied by (1 - t)?
2. the after- tax cost of perferred stock is closest to:
3. after- tax cost of retained earning
4. after -tax cost of internal equity
Shouldn't the rate be multiplied by (1 - t)?