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Holdup Bank has an issue of preferred stock with a $10 stated dividend that just sold for $95 per share. What is the bank's cost
Holdup Bank has an issue of preferred stock with a $10 stated dividend that just sold for $95 per share. What is the bank's cost of preferred stock? Multiple Choice 10.00% 10.11% 11.05% 10.53% O 10.95% Consider the following information for Evenflow Power Co., Debt: Common stock: 6,000 6 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 126,000 shares outstanding, selling for $59 per share; the beta is 1.08. 21,000 shares of 5 percent preferred stock outstanding, currently selling for $106 per share. 7.5 percent market risk premium and 4 percent risk-free rate Preferred stock: Market: Assume the company's tax rate is 35 percent. Required: Find the WACC. (Do not round your intermediate calculations.) Multiple Choice O 8.53% O 7.88% 8.16% 7.76% 7.66%
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