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Cornfield Insurance Inc. plans to issue additional preferred stock, which it can sell to investors at the current market price of 51.07. The stock

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Cornfield Insurance Inc. plans to issue additional preferred stock, which it can sell to investors at the current market price of 51.07. The stock pays a perpetual dividend of 6.5% of its par value of $50. The flotation costs of selling new shares are 4.7% of the price. What is the cost of new preferred stock to Cornfield Insurance Inc.?

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