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IVY has preferred stock selling for 97.3 percent of par that pays a 7.7 percent annual coupon. What would be IVY's component cost of preferred

IVY has preferred stock selling for 97.3 percent of par that pays a 7.7 percent annual coupon. What would be IVY's component cost of preferred stock?

7.91%

7.70%

7.49%

20.79%

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