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A firm's preferred stock pays an annual dividend of $10, and the stock sells for $77. Flotation costs for new issuances of preferred stock are

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A firm's preferred stock pays an annual dividend of $10, and the stock sells for $77. Flotation costs for new issuances of preferred stock are 6% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 32%? (Round your answer to 2 decimal places.) Multiple Choice 15.97 12.47 15.27 13.82

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