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A company's perpetual preferred stock currently sells for $78 per share, and pays an annual dividend of $5.00 . In issuing the preferred shares, the

A company's perpetual preferred stock currently sells for $78 per share, and pays an annual dividend of $5.00 . In issuing the preferred shares, the company incurs flotation costs of 6%. The company's cost of preferred stock is _____% (to two decimal places)

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