1. Holdup Bank has an issue of preferred stock with a $6.25 stated dividend that just sold for $99 per share. What is the bank’s cost of preferred stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

2. Suppose the Japanese yen exchange rate is ¥76 = $1, and the British pound exchange rate is £1 = $1.55. a. What is the cross-rate in terms of yen per pound? (Round your answer to 2 decimal places, e.g., 32.16.) Cross-rate ¥/£ 117.80 b. Suppose the cross-rate is ¥121 = £1. What is the arbitrage profit per dollar used? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) Arbitrage profit $