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A company issues $50 par value preferred shares with a $3.00 dividend for $35. The company has a 40% tax rate and faces no flotation

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A company issues $50 par value preferred shares with a $3.00 dividend for $35. The company has a 40% tax rate and faces no flotation costs. The company's cost of preferred shares is closest to %. 3.00 5.14 3.43 8.57

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