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Lei-Feng, Inc.'s preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The

Lei-Feng, Inc.'s preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rateis 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be?

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