The current cost of preferred equity can be found by taking the ratio of the annual dividend on the preferred stock to the current price of preferred shares.

Name: The current cost of preferred equity can be found by taking the ratio of the annual dividend on the preferred stock to the current price of preferred shares.
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Question

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This is the correct formula for calculating the current cost of preferred equity. It is referred to as the dividend yield or dividend rate.

The Current Cost of Preferred Equity Can Be Found by Taking