Terry Corporation preferred stocks are expected to pay a $9 annual dividend forever. If the required rate of return on equivalent investments is 11%, a share of Terry preferred should be worth:
$99.00 |
$122.22 |
$81.82 |
P0 = Annual Dividend / Required Return
= $9 / 0.11 = $81.82
Hence, option "C" is correct.
Terry Corporation preferred stocks are expected to pay a $9 annual dividend forever. If the required...
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