Estimating Cost of Preferred Equity Capital and WACC the consolidated balance sheets of JP Morgan Chase show that the company has 2,606,750 shares of preferred stock outstanding at the end of fiscal 2018. That preferred stock has a book value of $10,000 per share. During fiscal 2018, the company declared $1,551 million in dividends for its preferred stock. Estimate the cost of preferred equity capital, r, pe.