Holdup Bank has an issue of preferred stock with a stated dividend of $7 that just...

Holdup Bank has an issue of preferred stock with a stated dividend of $7 that just sold for $87 per share. What is the bank’s cost of preferred ?

Expert Solution

Ans 8.05%

Cost of preferred stock =	Dividend / price * 100
	7 / 87 * 100
	8.05%

jeff jeffy answered 2 years ago

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