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Harris Inc.'s preferred stock was issued five years ago to yield 9%. Investors buying those shares on the secondary market today are getting a 14%

Harris Inc.'s preferred stock was issued five years ago to yield 9%. Investors buying those shares on the secondary market today are getting a 14% return. Harris generally pays flotation costs of 11% on new securities issues. What is Harris's cost of preferred financing? Round the answer to two decimal places.

fill in the blank 1%

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