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Elegent Inc. can issue perpetual preferred stock at a price of $45.50 a share. The stock would pay a constant annual dividend of$4.65 a share.

Elegent Inc. can issue perpetual preferred stock at a price of $45.50 a share. The stock would pay a constant annual dividend of$4.65 a share. What is the company's cost of preferred stock, r_p?

8.00%

10.22%

12.25%

4.65%

13.50%

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