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A firm is paying an annual dividend of $8.00 for its preferred stock which is selling for $62.00. There is a selling cost of $3.00.

A firm is paying an annual dividend of $8.00 for its preferred stock which is selling for $62.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 38%? (Round your answer to 2 decimal places.) 13.56% 15.71% 12.21% 15.01%

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