Union National Bank has an issue of preferred stock with a $6.20 stated dividend that just sold for $105 per share. What is the bank's cost of preferred stock?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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SUBJECT FINANCIAL ACCOUNTING

Union National Bank has an
issue of preferred stock with a
$6.20 stated dividend that just
sold for $105 per share. What
is the bank's cost of preferred
stock?
Transcribed Image Text:Union National Bank has an issue of preferred stock with a $6.20 stated dividend that just sold for $105 per share. What is the bank's cost of preferred stock?
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