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Fly Dubai has issued 10 percent preferred stock, which sold for $100 per share par value. The cost of issuing and selling the stock

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Fly Dubai has issued 10 percent preferred stock, which sold for $100 per share par value. The cost of issuing and selling the stock was $2 per share. The firm's marginal tax rate is 40 percent. The cost of the preferred stock is: O a. 6.1 percent O b. 9.8 percent O c. 3.9 percent O d. 10.2 percent

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