If the required return on 59 Achi's preferred stock is 8.3%, what is its price?
Achi Corp. has preferred stock with an annual dividend of $3.19. If the required return on 59 Achi's preferred stock is 8.3%, what is its price? (Hint For a preferred stock, the dividend growth rate is zero.)
Achi's stock price will be $ _______
Homework Answers
Price of the preferred stock=Annual dividend/Required rate
Price of the preferred stock=3.19/8.3%
Price of the preferred stock=38.43
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If the required return on 59 Achi's preferred stock is 8.3%, what is its price?
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