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Inc.'s perpetual preferred stock sells for exist85.00 per share, and it pays an exist8.50 annual dividend. If the company were to sell a new preferred

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Inc.'s perpetual preferred stock sells for exist85.00 per share, and it pays an exist8.50 annual dividend. If the company were to sell a new preferred issue. It would a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? a. 11.30% b. 10.42% c. 8.75% d. 8.44% e. 12.81%

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