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The preferred stock of Aukland Co. is selling for $42 a share. What is the firm's cost of preferred stock if the prefer stock pays

The preferred stock of Aukland Co. is selling for $42 a share. What is the firm's cost of preferred stock if the prefer stock pays a constant dividend of $2.8?

A. 11.36 percent

B. 9.50 percent

C. 15.00 percent

D. 6.67 percent

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