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What is the cost of preferred stock that pays a 12% dividend and sells at par if the firm's tax rate is 35%? Hint: assume

What is the cost of preferred stock that pays a 12% dividend and sells at par if the firm's tax rate is 35%? Hint: assume the preferred stock price is $1,000 and the dividend is $120.

Please do not copy from Chegg. I need an original answer with a proper explanation with step by step explanation.

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