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(Cost of Preferred Stock) The preferred stock of CougarCo will sell for $43.37 and pay a $3.75 dividend. The net price of the security after

(Cost of Preferred Stock) The preferred stock of CougarCo will sell for $43.37 and pay a $3.75 dividend. The net price of the security after flotation costs will be $39.28. What is the cost of capital for the preferred stock?

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