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A firm's preferred stock pays an annual dividend of $2, and the stock sells for $82. Flotation costs for new issuances of preferred stock are

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A firm's preferred stock pays an annual dividend of $2, and the stock sells for $82. 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 30%? (Round your answer to 2 decimal places.) 4.74 4.04 2.59 1.24

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