Final answer:
The dividend of Firm X can be calculated by multiplying the preferred stock price by the tax rate.
Step-by-step explanation:
The dividend of a firm can be calculated by multiplying the preferred stock price by the tax rate. In this case, the tax rate is 21% and the preferred stock price is 8%. To find the dividend, we multiply 8% by 21%:
Dividend = 0.08 * 0.21 = 0.0168 or 1.68%
Therefore, the firm's dividend is 1.68%.