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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

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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