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The current price of the firms 9%, $100 par value, quarterly dividend, perpetual preferred stock is $105. Coleman would incur flotation costs equal to 4.8%

The current price of the firms 9%, $100 par value, quarterly dividend, perpetual preferred stock is $105. Coleman would incur flotation costs equal to 4.8% of the proceeds on a new issue. What is the firm's cost of preferred stock?

answer is 9% show work

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