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Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $119 and
Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $119 and a dividend rate of 6.8%. The stock is selling for $88.72 in the market. Kyle hires Wilson Investment Bankers to sell the preferred stock. Wilson charges a fee of 2% on the sale of preferred stock. What is the cost of preferred stock for Kyle using the investment banker
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