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Your firm plans to issue preferred stock with a par value of $100 per share. The flotation costs are estimated to be 2.2%. Assuming the

Your firm plans to issue preferred stock with a par value of $100 per share. The flotation costs are estimated to be 2.2%. Assuming the preferred has a dividend rate of 6% and is expected to sell for $83.65 per share, what is the cost of preferred stock financing? Round your answer to 2 decimal places in percentage terms.

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