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A firm plans to use their investment bankers to issue some new shares of preferred stock. The bankers will charge the firm 5 % of

A firm plans to use their investment bankers to issue some new shares of preferred stock. The bankers will charge the firm 5% of the proceeds. The preferred stock will pay an annual dividend of $8 and will be priced at $100. What will be the cost of preferred stock, rPS, including the flotation costs?

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