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Suppose, the travel arrangement business, Expedia is about to sell 200,000 preferred stocks at the price of $32 per share which pays $4 annual dividend.

Suppose, the travel arrangement business, Expedia is about to sell 200,000 preferred stocks at the price of $32 per share which pays $4 annual dividend. If the flotation cost is 7% of the stock price then, what is the cost of capital for the preferred stock? (State your answer in percentage with two decimal point)

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