ABC Company also has preferred stock outstanding that pays a $2.05 per share fixed dividend. If this stock is currently priced at $29.55 per share, what is ABC Company's cost of preferred stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer.

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Correct response: 6.94

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ABC Company has existing debt issued three years ago with a coupon rate of 6%. The firm just issued new debt at par with a coupon rate of 6.9%. What is ABC Company's pre-tax cost of debt? Enter your answer as a percentage. Do not include a percent sign in your answer.

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