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eBook Problem Walk-Through Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $70 par preferred stock with a 7% dividend. A

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eBook Problem Walk-Through Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $70 par preferred stock with a 7% dividend. A similar stock is selling on the market for $80. Burnwood must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places

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