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A firm is paying an annual dividend of $9.00 for its preferred stock which is selling for $60.00. There is a selling cost of $3.00.

A firm is paying an annual dividend of $9.00 for its preferred stock which is selling for $60.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 33%? (Round your answer to 2 decimal places.)

17.24%

15.79%

14.44%

17.94%

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