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A firm's preferred stock pays an annual dividend of $5, and the stock sells for $87. Flotation costs for new issuances of preferred stock are

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A firm's preferred stock pays an annual dividend of $5, and the stock sells for $87. Flotation costs for new issuances of preferred stock are 4% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 34%? (Round your answer to 2 decimal places.) Multiple Choice O 7.44 O 5.99 O O 8.14

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