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A firm is paying an annual dividend of $5.00 for its preferred stock which is selling for $62.00. There is a selling cost of $2.00.

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A firm is paying an annual dividend of $5.00 for its preferred stock which is selling for $62.00. There is a selling cost of $2.00. What is the after-tax cost of preferred stock if the firm's tax rate is 37%? (Round your answer to 2 decimal places.) Multiple Choice 6.98% 10.48% 9.78% Thing 8.33%

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