Traditional Bank has an issue of preferred stock with an annual dividend of $7.50 that just...

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Traditional Bank has an issue of preferred stock with an annual dividend of $7.50 that just...

Traditional Bank has an issue of preferred stock with an annual dividend of $7.50 that just sold for $62 a share. What is the bank's cost of preferred stock?

12.91 percent

13.47 percent

11.23 percent

12.10 percent

11.32 percent

business finance

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Answer 1

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Answer #1

cost of preferred stock 94 Dividend/Price of Pref Stock 7.50/62 0.120968 12.10% cost of preferred stock 12.10%

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Answer 2

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