Problem 12-5 Calculating Cost of Preferred Stock [LO 1]

Sixth Fourth Bank has an issue of preferred stock with a $6.10 stated dividend that just sold for $123 per share.

Required:

What is the banks cost of preferred stock? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Cost of preferred stock

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