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Company annual percentage cost of preferred stock

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Taylorville Corporation strives to maintain a capital structure that includes 38% debt and 10% preferred stock. If the pre-tax cost of debt (kd) is 5.7% annually, the cost of common equity (ke) is 10.8% annually, the company's marginal income tax rate is 26%, and the weighted average cost of capital (kA or WACC) is 7.9638% annually, what is the company's annual percentage cost of preferred stock (kp) financing?

Reference no: EM132022875

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