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A preferred stock from ABC pays $3.55 in annual dividends. If the required return on the preferred stock is 6.7%, what is the value of the stock?

1 Answer

4 votes

Answer:

The value of the stock is $52.99 or $53.

Explanation:

Annual dividend per share

Cost of preferred stock

=

$

3.55

6.7

%

=

$

52.99

hope this helps :)

User Eugene Stepanenkov
by
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