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Your firm plans to issue preferred stock with a par value of $100 per share. Assuming the preferred has a dividend rate of 3.53% and

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Your firm plans to issue preferred stock with a par value of $100 per share. Assuming the preferred has a dividend rate of 3.53% and is expected to sell for $85.55 per share, what is the cost of preferred stock financing? Round your answer to 2 decimal places in percentage terms. test.xlsx All else equal, increasing the Marginal Cost of Capital will increase the value of the firm. True False

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