A share of preferred stock is paying an annual dividend of $5. What is the price of the preferred stock if the required rate of return is 11%?
Select one: A. $66.67 B. $45.45 C. $41.67 D. $35.71
Formula
The price of the preferred stock must be:
The correct option is B.
A share of preferred stock is paying an annual dividend of $5. What is the price...
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