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Suppose a company's 9 percent preferred stock ($100 par value) is selling for $95 a share. If the firm's marginal tax rate were 50 percent,
Suppose a company's 9 percent preferred stock ($100 par value) is selling for $95 a share. If the firm's marginal tax rate were 50 percent, the cost of new preferred would be closest to ________, assuming that the firm maintains its current capital structure in market value terms.
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