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A company is raising $1,750,000 by selling preferred stock. The face value of the preferred stock is $1000, and the annual dividend rate is 0.5%.
A company is raising $1,750,000 by selling preferred stock. The face value of the preferred stock is $1000, and the annual dividend rate is 0.5%. A single share of this company's preferred stock is selling for $40, with a floatation cost of $2 per share. What is the cost of capital?
13.16 %
8.72 %
15.43 %
12.98 %
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