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Alarm Systems Corporation's preferred stock pays a dividend of $3.60 and sells for $28.00. Alarm Systems Corporation has a marginal tax rate of 35%. What

Alarm Systems Corporation's preferred stock pays a dividend of $3.60 and sells for $28.00. Alarm Systems Corporation has a marginal tax rate of 35%. What is the cost of preferred financing?

12.857%

13.785%

9.412%

11.953%

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