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    Calculating Cost of Preferred Stock

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    Walk me through this problem:

    A bank has as issue of preferred stock with a $6.50 stated dividend that just sold for $90.00 per share. What is the banks cost of preferred stock?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:56 pm ad1c9bdddf
    https://brainmass.com/business/finance/calculating-cost-of-preferred-stock-19253

    Solution Preview

    Preferred stock can be viewed similarly to
    <br>a perpetuity or a ...

    $2.49

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