Diggin Tools just issued new preferred stock, which sold for $85 in the stock markets.Holders of the stock will receive an annual dividend equal to $9.35.The flotation costs associated with the new issue were 6 percent and Diggin's marginal tax rate is 30 percent.What is Diggin's cost of preferred stock, rps?
A)11.0%
B)7.7%
C)8.2%
D)11.7%
E)10.3%

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The Answer of Diggin Tools just issued new preferred stock, which sold for $85 in the stock markets.Holders of the stock will receive an annual dividend equal to $9.35.The flotation costs associated with the new issue were 6 percent and Diggin's marginal tax rate is 30 percent.What is Diggin's cost of preferred stock, rps?
A)11.0%
B)7.7%
C)8.2%
D)11.7%
E)10.3%

Diggin Tools Just Issued New Preferred Stock, Which Sold for $85