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Moraine, Inc., has an issue of preferred stock outstanding that pays a $6.15 dividend every year...

Moraine, Inc., has an issue of preferred stock outstanding that pays a $6.15 dividend every year in perpetuity. If this issue currently sells for $95 per share, what is the required return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Required return %
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Answer #1

Required Return of Preferred Stock = Annual Dividend/Price

Required Return of Preferred Stock = 6.15/95

Required Return of Preferred Stock = 6.47%

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