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16. Lando Inc's perpetual preferred stock sells for $50.6 per share and it pays a $4.90 annual dividend. If the company were to sell a

16. Lando Inc's perpetual preferred stock sells for $50.6 per share and it pays a $4.90 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 3.50% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC= What is the interpretation of this number?

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