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Question 14.3: On March 5, 1997, Illinois Power Co. had two issues of prefe...

On March 5, 1997, Illinois Power Co. had two issues of preferred stock that traded on the NYSE. One issue paid $2.04 annually per share and sold for $30 3⁄4 per share. The other paid $3.00 per share annually and sold for $44 1⁄2 per share. What is Illinois Power’s cost of preferred stock?

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