#3 A firm issues preferred stock with a dividend of $4.83. If the appropriate discount rate...
Homework Answers
Q-1
Value of preferred stock =Dividend/discount rate =4.83/9.05% =53.37
Q-2
Value of the stock =Expected dividend/required rate+growth =1.27/(12.3%-3.12%) =13.83
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#3
A firm issues preferred stock with a dividend of $4.83. If the
appropriate discount rate...
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