What is the companys cost of preferred stock

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Hetten house Company’s (HC) perpetual preferred stock sells for $105.50 per share, and it pays a $9.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.50% of the price paid by investors. HC’s marginal tax rate is 30%. What is the company's cost of preferred stock for use in calculating the WACC? (Please show work)

Reference no: EM13729508

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