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Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $99 and a dividend rate of
Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $99 and a dividend rate of 10.3%. The stock is selling for $65.98 in the market. Kyle hires Wilson Investment Bankers to sell the preferred stock. Wilson charges a fee of 3% on the sale of preferred stock. What is the cost of preferred stock for Kyle using the investment banker?
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