What is the value of an Allstate preferred stock that pays a $1.40 dividend to an investor with a required rate of return of 7%?
A. $26
B. $22
C. $20
D. $24
Value of stock = Annual dividend/Required rate
Value of stock = $1.40/7%
Value of stock = $20 (Option C)
What is the value of an Allstate preferred stock that pays a $1.40 dividend to an...
What is the value of an Allstate preferred stock that pays a $1.40 dividend to an investor with a required rate of return of 7%? A. $22 B. $20 C. $26 D. $24
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