Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50...

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Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50...

Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50 per share. If the required return on this preferred stock is 6.5% at what price should the preferred stock sell?

business finance

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Answer 1

Answer #1

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Answer 2

Answer #2

The share price will be Dividend/Required rate which is =7.5/.065 = $115.38 appx

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Answer 3

Answer #3

Po = D/r

Po = $7.50/.065 = $115.38

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Answer 4

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Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50...

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Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50...