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Burnwood Tech plans to issue some $ 6 0 par preferred stock with a 6 % dividend. A similar stock is selling on the market

Burnwood Tech plans to issue some $

60

par preferred stock with a

6 %

dividend. A similar stock is selling on the market for $

70 .

Burnwood must pay floatation costs of

5 %

of the issue price. What is the cost of the preferred stock?

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