Value of a Preferred Stock If a preferred stock from Ecology and Environment, Inc. (EEI) pays $6.50 in annual dividends, and the required return on the preferred stock is 6.20 percent, what's the value of the stock?
Value of the stock = Dividend / Required return
Value of the stock = $6.50 / 0.0620
Value of the stock = $104.84
Value of a Preferred Stock If a preferred stock from Ecology and Environment, Inc. (EEI) pays...
Value of a Preferred Stock If a preferred stock from Pfizer Inc. (PFE) pays $6.00 in annual dividends, and the required return on the preferred stock is 11.00 percent, what's the value of the stock? Multiple Choice $.55 $66.00 $.66 $54.55
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Problem 8-1(Preferred stock valuation) What is the value of a preferred stock when the dividend rate is 16 percent on a $75 par value? The appropriate discount rate for a stock of this risk level is 14 percent. The value of the preferred stock is _______ . (Round to the nearest cent.)(Preferred stock valuation) The preferred stock of Gandt Corporation pays a $0.50 dividend. What is the value of the stock if your required return is 11 percent? The value of the...
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1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors' required rate of return is 10 percent, what is the market value of the shares? If the required return declines to 6 percent, what is the change in the price of the stock? 2. What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why are the valuations different? a. MN, Inc., $8 preferred ($100 par) b....
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