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WILL UPVOTE!!! question 3 A perpetual preferred stock sells for $160.00 per share, and it pays an $16.00 annual dividend. If the company were to

WILL UPVOTE!!! question 3

A perpetual preferred stock sells for $160.00 per share, and it pays an $16.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 6.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?

2.66%

6.00%

10.64%

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