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A firm is paying an annual dividend of $7.00 for its preferred stock which is selling for $63.00. There is a selling cost of $3.00.

A firm is paying an annual dividend of $7.00 for its preferred stock which is selling for $63.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 31%? (Round your answer to 2 decimal places.)

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