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Your firm is planning to issue preferred stock. The stock sells for $129; however, if new stock is issued, the company would receive only $117.39.

Your firm is planning to issue preferred stock. The stock sells for $129; however, if new stock is issued, the company would receive only $117.39. The par value of the stock is $100, and the dividend rate is 18 percent. What is the cost of capital for the stock to your firm?

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