question archive What is the value of a preferred stock that pays a $4
What is the value of a preferred stock that pays a $4
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What is the value of a preferred stock that pays a $4.50 dividend to an investor with a required rate of return of 10%?
$22.22
$27.83
$45
$55.50
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Answer:
Price =Dividend/r
=$4.50 /10% = $45
$45
