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Rada Corporations preferred stock currently sells for $110.00 per share, and it pays an $7.00 annual dividend. If the company were to sell a new

Rada Corporations preferred stock currently sells for $110.00 per share, and it pays an $7.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 6.00% of the issue price. What is the firm's cost of preferred stock?

6.32%

6.93%

6.08%

6.77%

6.48%

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