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Please post the full question as it appears in your book so that I can help
I believe there is missing information, I will post the solution according to the given data, but I recommend that you email the instructor and tell him that the Current Price of Preferred Stock is not given. This is because if Preferred Stock is currently selling at par, then the cost of preferred stock is already given as 8.5%
Please advise the name of the book you are using: Title, author's name, and edition (is the question from the book?)
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