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Slack Company is also estimating its cost of preferred stock. It currently has two preferred stocks outstanding. One pays a dividend of $2.75 per $100

Slack Company is also estimating its cost of preferred stock. It currently has two preferred stocks outstanding. One pays a dividend of $2.75 per $100 face value and is trading for $18.46. The other is paying a dividend of $2.25 per $100 face value and is trading for $14.95. What is the cost of of preferred stock if we average the cost of both existing preferred stocks?

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