Holdup bank has an issue of preferred stock with a stated dividend of $4.25 that just sold for $93 per share. what is the bank’s cost of preferred stock? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

cost of preferred stock will be equal to 4.56 %

Explanation:

We have given dividend on the preferred stock = $4.25

As the stock is sold for $93 per share so current price = $93

We have to find the preferred stock

We know that preferred stock is given by

Preferred stock = 4.56 %

So cost of preferred stock will be equal to 4.56 %

mauve company permits employees to occasionally use the copying machine for personal purposes