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Grill Works's outstanding preferred stock has a face value of $100 and dividend rate of 5 %. It is currently selling for $50 per share.

Grill Works's outstanding preferred stock has a face value of $100 and dividend rate of 5 %. It is currently selling for $50 per share. The market rate of return is ,14 % and the firm's tax rate is 35 percent. What is the firm's cost of preferred stock?

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