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Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $80 par preferred stock with a 8% dividend. A similar stock is

Cost of Preferred Stock with Flotation Costs

Burnwood Tech plans to issue some $80 par preferred stock with a 8% dividend. A similar stock is selling on the market for $95. Burnwood must pay flotation costs of 6% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.

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