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3. Chapter MC, Section .09, Problem 017 Perpetual preferred stock from Franklin Inc. sells for $97.50 per share, and it pays an $8.50 annual dividend.

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3. Chapter MC, Section .09, Problem 017 Perpetual preferred stock from Franklin Inc. sells for $97.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? Ca. 9.08% Ob. 8.72%. Oc. 9.82% Od. 10.22% Oe. 9.44%

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