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In the spring of 2017 the Marrion Metal Shaping Company was planning on issuing preferred stock to help finance a major plant expansion. The stock

In the spring of 2017 the Marrion Metal Shaping Company was planning on issuing preferred stock to help finance a major plant expansion. The stock is expected to sell for $98.13 a share and will have a $100 par value on which the firm will pay a 10.1 percent dividend. What is the cost of capital to the firm for the preferred stock?

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