Stana, Inc., has preferred stock outstanding that sells for $100.28 per share. If the required return...

Question

Question

Stana, Inc., has preferred stock outstanding that sells for $100.28 per share. If the required return is 3.96 percent, what is the annual dividend?

Answer 1

Answer #1

Required return from Preference = annual dividend/current market price of preference.

3.96% =annual dividend/100.28

Annual dividend=$3.97

Answer 2

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