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5. Problem 10.02 (Cost of Preferred Stock) eBook Torch Industries can issue perpetual preferred stock at a price of $54.00 a share. The stock would

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5. Problem 10.02 (Cost of Preferred Stock) eBook Torch Industries can issue perpetual preferred stock at a price of $54.00 a share. The stock would pay a constant annual dividend of $7.00 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places. %

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