question archive A preferred stock pays an annual dividend of $6
A preferred stock pays an annual dividend of $6
Subject:FinancePrice:2.87 Bought7
A preferred stock pays an annual dividend of $6.50 a share and has an annual rate of return of 7.35 percent. What is the stock price?
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Answer:
Calculation of Stock Price :
Stock Price for preferred stock = Annual dividend / Annual rate of return
= $6.50 / 7.35%
= 6.50 / 0.0735
= $88.44
