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A firm's preferted stock pays an annual dividend of $7, and the stock selis for $75. Flotation costs for new issuances of preferted stock are

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A firm's preferted stock pays an annual dividend of $7, and the stock selis for $75. Flotation costs for new issuances of preferted stock are 6% of the stock value. What is the affer-tax cost of preferred stock if the firm's tax rate is 37% ? Note: Round your answer to 2 decimal ploces. Mumple choice 993 12 1134 HSB

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