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Torch Industries can issue perpetual preferred stock at a price of $63.50 a share. The stock would pay a constant annual dividend of $6.50 a

Torch Industries can issue perpetual preferred stock at a price of $63.50 a share. The stock would pay a constant annual dividend of $6.50 a share. What is the company's cost of preferred stock, r_p? Round your answer to two decimal places.

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