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Problem 13-13 Harris Inc.'s preferred stock was issued five years ago to yield 9%. Investors buying those shares on the secondary market today are getting
Problem 13-13 Harris Inc.'s preferred stock was issued five years ago to yield 9%. Investors buying those shares on the secondary market today are getting a 13.5% return. Harris generally pays flotation costs of 10.5% on new securities issues. What is Harris's cost of preferred financing? Round the answer to two decimal places. %
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