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IVY has preferred stock selling for 97.8 percent of par that pays a 7.2 percent annual coupon. What would be IVY's component cost of preferred

IVY has preferred stock selling for 97.8 percent of par that pays a 7.2 percent annual coupon. What would be IVY's component cost of preferred stock?

15.84%

7.36%

7.04%

7.20%

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