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Company ABC's investment banker advises the firm it is possible to sell at face value, a new issue of $55 preferred stock for company ABC.

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Company ABC's investment banker advises the firm it is possible to sell at face value, a new issue of $55 preferred stock for company ABC. This is two part question in each case please label all the variables and explain what the answer means in one two sentence each What is the required rate of return at which investors are willing to purchase thus new preferred stock issue? Once you know the required rate of return, what is the cost of capital to the firm for the preferred stock issue

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