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A company plans to issue new Preferred Stock that pays 4% on the Par Value of $25. Similar preferred stocks are current selling in the

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A company plans to issue new Preferred Stock that pays 4% on the Par Value of $25. Similar preferred stocks are current selling in the market for Pp = $24. If the firm expects flotation costs of 5% per share, then what is the cost of newly issued preferred stock to the firm? The firms tax rate = 25%. 3.67% 4.04% 4.39% 4.78% 5.10

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