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Uptown, Inc. has preferred selling for 102 percent of par that pays a 6% annual coupon. What would be Uptown's component cost of perferred stock?

Uptown, Inc. has preferred selling for 102 percent of par that pays a 6% annual coupon. What would be Uptown's component cost of perferred stock?

a. 5.88%

b. 6.00%

c. 1.02%

d. 6.12%

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