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Your firm is planning to issue preferred stock. The stock sells for $126; however, if new stock is issued, the company would receive only $112.14.

Your firm is planning to issue preferred stock. The stock sells for $126; however, if new stock is issued, the company would receive only $112.14. The par value of the stock is $100, and the dividend rate is 15 percent. What is the cost of capital for the stock to your firm? The cost of capital for the preferred stock to your firm is ______%.

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