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Borkshire Castaway has preferred stock outstanding that is currently selling for $54.49 a share and pays a dividend of $3.1 per share. The rate of

Borkshire Castaway has preferred stock outstanding that is currently selling for $54.49 a share and pays a dividend of $3.1 per share. The rate of return on the market portfolio is 8.97 percent, the risk free rate is 4.5 percent, and the firm's tax rate is 32 percent. What is Borkshire's cost of preferred stock? Enter answer in percents.

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