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A firm has 6.65% (dividend rate) preferred stock outstanding that is currently selling for $7735 per share. The market rate of return is 11.50% and

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A firm has 6.65% (dividend rate) preferred stock outstanding that is currently selling for $7735 per share. The market rate of return is 11.50% and the tax rate is 21%. What is the cost of preferred stock if its par value is $100 per share? (Hint: Dividend Rate = Dividend Amount / Pan) Multiple Choice 665% 8603 679%

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