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540 Cost of Capital and Long-Term Financial Policy PART 6 equity capital using the arithmetic average growth rate in dividends? What in you use the geometric average growth rate? a. 5. Caleulating Cost of Preferred Stock [LO1] Holdup Bank has an issue of preferred stock with a $3.76 stated dividend that just sold for $87 per What is the bank's cost of preferred stock? c. 13. C