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A company's preferred stock sells for $120 per share, and it pays an $10 annual dividend. If the company were to sell a new preferred

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A company's preferred stock sells for $120 per share, and it pays an $10 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4% of the price paid by investors. What is the company's new cost of preferred stock (for use in calculating the WACC)

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