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Medco Corporation can sell preferred stock for $122 with an estimated flotation cost of $3. It is anticipated the preferred stock will pay $13 per

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Medco Corporation can sell preferred stock for $122 with an estimated flotation cost of $3. It is anticipated the preferred stock will pay $13 per share in dividends. a. Compute the cost of preferred stock for Medco Corp. (Input your answer as a percent rounded to 2 decimal places.) Cost of proferred stock b. Do we need to make a tax adjustment for the issuing firm? Yes O No

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