Whistle Stop Restaurants. has a preferred stock that pays a dividend of $1.375. If you are willing to purchase the stock at $21, what is your required rate of return? (Round your answer to the nearest .1% and assume that there are no transaction costs.)
Required rate of return=Annual dividend/Current value
=1.375/21
which is equal to
=6.5%(Approx).
Whistle Stop Restaurants. has a preferred stock that pays a dividend of $1.375. If you are...
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