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What is the company cost of preferred stock

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Question - Perpetual preferred stock from Franklin Inc. sells for $123.8 per share, and it pays an $7 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC (%)?

Reference no: EM133123905

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