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IBM expects to pay a dividend of $7 next year and expects these dividends to grow at 3.62% a year. The price of IBM is

IBM expects to pay a dividend of $7 next year and expects these dividends to grow at 3.62% a year. The price of IBM is $83 per share. What is IBM's cost of equity capital?

If flotation cost is 5%, what is the cost of preferred stock that sells for $98 per share and has a yield of 8.14%, and a face value of $100?

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