Compute the cost of preferred stock

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Reference no: EM13956134

Medco Corporation can sell preferred stock for $90 with an estimated flotation cost of $2. It is anticipated the preferred stock will pay $8 per share in dividends. a. Compute the cost of preferred stock for Medco Corp. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM13956134

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