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5. Angies List is planning to issue preferred stock. Using information provided, what is the cost of capital for the stock to your firm? The

5. Angies List is planning to issue preferred stock. Using information provided, what is the cost of capital for the stock to your firm?

The stock will be price to sell at $120.

After floatation costs - the company would receive only $97.

The par value of the stock is $100, and the dividend rate is 13%.

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