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Alex is an analyst for ABC securities and needs to find the cost of preferred capital for a company he follows. The preferred stock has

Alex is an analyst for ABC securities and needs to find the cost of preferred capital for a company he follows. The preferred stock has a par value of 5,600,000 based on 2,000,000 shares. and was issued with a 3.5% dividend. The shares sell for 8.5 each. what is the appropriate cost of preferred equity capital for this company? The company is in the 50% tax bracket.

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