13. Miller's preferred stock is selling at $54 on the market and pays an annual dividend...

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13. Millers preferred stock is selling at $54 on the market and pays an annual dividend of $4.20 per share. a. What is the e

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Answer 1

Answer #1

a)

rate of return = dividend/price

= 4.2/54

= 7.78%

b)

value of stock = 4.2/0.09

= 46.67

c)

No, since price of stock is higher than expected

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Answer 2

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