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A firm has issued 7.5 percent preferred stock dividends, which sold for $94 per share par value. The cost of issuing and selling the stock

A firm has issued 7.5 percent preferred stock dividends, which sold for $94 per share par value. The cost of issuing and selling the stock was $3.25 per share. The firm's marginal tax rate is 40 percent. The cost of the preferred stock is

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