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Klieman Companys perpetual preferred stock sells for $84 per share and pays a $7.6 annual dividend per share. If the company were to sell a
Klieman Companys perpetual preferred stock sells for $84 per share and pays a $7.6 annual dividend per share. If the company were to sell a new preferred issue, it would incur a flotation cost of 6.6% of the price paid by investors. What is the company's cost of preferred stock?
10.19%
8.69%
8.19%
9.69%
9.19%
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