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A company's perpetual preferred stock currently sells for $92.50 per share and it pays an $7.20 annual dividend. If the company were to sell a
A company's perpetual preferred stock currently sells for $92.50 per share and it pays an $7.20 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 6.00% of the issue price. What is the firm's cost of preferred stock?
Group of answer choices
8.63%
9.10%
7.92%
8.28%
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