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A companys perpetual preferred stock currently sells for $110.00 per share, and it pays an $8.00 annual dividend. If the company were to sell a

A companys perpetual preferred stock currently sells for $110.00 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 3.50% of the issue price. What is the firm's cost of preferred stock?

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