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Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $4 and are currently selling for $74 a share. What is the

Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $4 and are currently selling for $74 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares is 5% and Builtrite is in the 34% marginal tax bracket?

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