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Question 4(1 point) Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a

Question 4(1 point)

Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $3.58 per year. That preferred stock is currently selling for $56.90. However, the underwriter would charge flotation costs of $3.26 per share. What is the form's cost of preferred stock financing?

Round the answers to two decimal places in percentage form.(Write the percentage sign in the "units" box)

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