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IVY has preferred stock selling for 98.0 percent of par that pays a 7.0 percent annual coupon. What would be IVY's component cost of preferred

IVY has preferred stock selling for 98.0 percent of par that pays a 7.0 percent annual coupon. What would be IVY's component cost of preferred stock?

Multiple Choice

6.86%
14.00%
7.14%
7.00%

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