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Cost of preferred stock

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(Cost of preferred stock)

Your firm is planning to issue preferred stock. The stock is expected to sell for $97.38 a share and will have a $100 par value on which the firm will pay a 13.5 percent dividend. What is the cost of capital to the firm for the preferred stock?

The firm's cost of capital to the preferred stock is ____% (round to two decimal places)

Reference no: EM131055666

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