Question:

What is the value of a preferred stock that pays a $2.10 dividend annually to an investor with a required rate

by  |  earlier

0 LIKES UnLike

of return of 11% (Round your answer to the nearest $1.)

 Tags:

   Report

2 ANSWERS


  1. $19

    to find the value of preferred stock use the perpetuity formula of CF/r

    so here, it's 2.10/.11


  2. $19/sh

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Unanswered Questions