Question: Bob's Stuff Inc has preferred stock with a stated dividend of $2.66, which is currently trading at $28.75 per share, and Bob believes that the

Bob's Stuff Inc has preferred stock with a stated dividend of $2.66, which is currently trading at $28.75 per share, and Bob believes that the company can issue additional shares at that price, but with flotation costs at 7% of the selling price. What is Bob's cost of preferred stock? (Show work and equation)

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