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Buoyant Cruises plans to issue preferred stock with a $ 1 2 0 par value and a 5 % dividend. Even thought the current market

Buoyant Cruises plans to issue preferred stock with a $120 par value and a 5% dividend. Even thought the current market value of its preferred stock is $80 per share, Buoyant expects to net only $75 for each share issued.
a. What is its cost of issuing preferred stock? The firm's marginal tax rate is 34%.
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