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Estimate the cost of financing on preferred stock

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Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $4.43 per year. That preferred stock is currently selling for $72.00. However, the underwriter would charge flotation costs of $4.65 per share. What is the form's cost of preferred stock financing?

Round the answers to two decimal places in percentage form.

Reference no: EM132502604

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