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A firm pays $1.80 in annual dividends on its preferred stock, which is currently priced at $45.00. The firm's tax rate is 40% and will
A firm pays $1.80 in annual dividends on its preferred stock, which is currently priced at $45.00. The firm's tax rate is 40% and will incur flotation costs of $2.00 per share. What is the firm's cost of preferred stock? Select one: O A. 2.67% O B. 4.00% O C. 6.67% O D. 4.19%
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