What is the bank cost of preferred stock

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1. You have thirty years until you retire. Today you have no investments. At the end of the year, you will make the first of 30 annual investments of $5,000 in an account that returns 7%, how much will you have on the day that you make the last of your thirty investments?

2. The Graber Corporation’s common stock has a beta of 1.15. If the risk-free rate is 3.5 percent and the expected return on the market is 11 percent, what is the company’s cost of equity capital?

3. Holdup Bank has an issue of preferred stock with a $3.75 stated dividend that just sold for $87 per share. What is the bank’s cost of preferred stock?

Reference no: EM132061120

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