Final answer:
The value of the preferred stock with a dividend of $3.91 and a discount rate of 10.12% is approximately $38.63.
Step-by-step explanation:
The value of preferred stock can be calculated using the concept of present discounted value (PDV), which is the current value of a future stream of dividends discounted by an appropriate interest rate. For a preferred stock that pays a fixed dividend, the value is calculated by dividing the annual dividend by the discount rate. Using the given dividend of $3.91 and a discount rate of 10.12%, we can calculate the value of the preferred stock.
To calculate the value: Value of Preferred Stock = Dividend / Discount Rate
Value of Preferred Stock = $3.91 / 0.1012 = $38.63
Therefore, the value of the preferred stock, considering a dividend of $3.91 and a discount rate of 10.12%, is approximately $38.63.