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The preferred stock of Rock Bottom Floors pays a fixed dividend of $7.50 annually. Each share of this stock is selling for $58.05 a share.

The preferred stock of Rock Bottom Floors pays a fixed dividend of $7.50 annually. Each share of this stock is selling for $58.05 a share. What is the firm's cost of preferred stock if the tax rate is 35 percent and the par value per share is $100? 12.92 percent 8.13 percent 7.50 percent 8.40 percent 14.14 percent

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