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Your firm, People's Consulting Group, has been asked to consult on a potential preferred stock offering by Brave New World. This 9% preferred stock issue

Your firm, People's Consulting Group, has been asked to consult on a potential preferred stock offering by Brave New World. This 9% preferred stock issue would be sold at its par value of $35 per share. Flotation costs would total $3.00 per share. Calculate the cost of this preferred stock.

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