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Questiul 20 Opis Diggin Tools plans to issue new preferred stock, which has a market value of $80 per share. Holders of the stock will

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Questiul 20 Opis Diggin Tools plans to issue new preferred stock, which has a market value of $80 per share. Holders of the stock will receive an annual dividend equal to $9.35. The flotation costs associated with the new issue were 6 percent and Diggin's marginal tax rate is 30 percent. What Diggin's component cost of preferred stock, Tps? 12.43% 11.70% 10.38% 11.00% 17.00%

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