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If flotation cost is 2%, what is the cost of preferred stock that sells for $97 per share and has a yield of 5.63%, and

If flotation cost is 2%, what is the cost of preferred stock that sells for $97 per share and has a yield of 5.63%, and a face value of $100?

IBM expects to pay a dividend of $4 next year and expects these dividends to grow at 3.38% a year. The price of IBM is $73 per share. What is IBM's cost of equity capital?

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