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Barton Industries can issue perpetual preferred stock at a price of $ 5 3 per share. The stock would pay a constant annual dividend of

Barton Industries can issue perpetual preferred stock at a price of $53 per share. The stock would pay a constant annual dividend of $2.51 per share. If the firm's marginal tax rate is 25%, what is the company's cost of preferred stock? Round your answer to two decimal places.

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