A firm's preferred stock pays a $4.25 dividend per year. Suppose the requred rate of return on the stock is 9%. What is the price of one share of preferred stock? Round to the nearest cent. Do not include the dollar sign in your answer. (i.e. If your answer were $1.23, then type 1.23 without a $ sign)
Solved
Show answers
More tips
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
- H Health and Medicine How to Cure Adenoids?...
- H Health and Medicine Why Wearing a Back Brace Can Be Beneficial During Back Strain?...
- S Sport When and Where Will the 2014 World Cup be Held?...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
Answers on questions: Business
- B Business A delivery of inventory from a vendor, with whom a credit line is already established, would be initially recorded in which type of accounting record and as part of what transaction...
- B Business Originally, Fred was spending half of his time producing tap shoes and the other half of his time producing ballet slippers; Ginger was dividing her time the same way. Then, Fred...
- C Chemistry 100 points.what happens when sodium chloride reacts with hydrochloric acid?...
- A Arts Why was the camera obscura developed? a. because of new trend toward using scientific techniques to aid the creation of art. b. because the technique of perspective used to create...
- B Biology Gloria has a lunch account in the school cafeteria. the balance, f(x), in her account can be represented by the function f(x) = –1.50x + 40, where x is the number of meals purchased....
- M Mathematics What is the standard deviation for the data set? 359, 320, 365, 310, 349, 351, 310, 314, 364...
- H History Which document is referred to as the “ supreme law of the land”?...
- B Business Which of the following long-term effects of alcohol abuse is irreversible? fatty liver cirrhosis of the liver hormonal disruption which of the following is a 6-point traffic violation?...
- E English Which sentence is written correctly no one can be as charming as my father can be carlos goes farther than anyone else on the football team see her dress was prettier than all...
- E English Type the word you selected as the best answer for item 1. this is vocabulary you guys they don t have no answers on k12....
Ответ:
Explanation:
the divided will be paid constantly at the same rate and rate of the dividend will not grow in future this is called dividend at constant rate and we will apply the following formula of dividend policy to find out the price of the stock :
Present value = D/Ke
Price of the share is the future value of cash flows on the stock
Price = 4.25/9%
Price = 47.22
Ответ:
answer:
d
explanation:
i tink am coect