state.edu M Syllabus for FIN-8113-501- x M McGraw Hill Connect 6 Question 3 - Chap A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A apter 14 - MBA Cost of...

Extracted text: state.edu M Syllabus for FIN-8113-501- x M McGraw Hill Connect 6 Question 3 - Chap A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A apter 14 - MBA Cost of Capital i The Hold Up Bank has issued 40,000,000 shares of preferred stock. Each share pays a $3.00 quarterly dividend in perpetuity. If the next dividend is to be paid later today, and one preferred share currently costs $203.00, what is the cost of preferred equity? Calculate as an EAR, not an APR. Enter your answer as a percent rounded to two decimals. Hint. The stock price is simply the present value of the expected future cash flows. Here the cash flows (dividends) happen to be a constant perpetuity with the first payment taking place today. 3. ints awerded 6.04 0 % Scored eBook Print References