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Khieman Company's perpetual preferred stock sells for $92 per share and pays a $12 annual dividend per share. If the company were to sell a

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Khieman Company's perpetual preferred stock sells for $92 per share and pays a $12 annual dividend per share. If the company were to sell a new preferred issue. it would incur a flotation cost of 3.4% of the price paid by investors. What is the company's cost of preferred stock? 13.50% 14.00% 14.50% 15.00% 15.50%

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