Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $3.34...

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Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $3.34...

Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $3.34 every year in perpetuity. If the required return is 3.59 percent, what is the current stock price?

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Answer 1

Answer #1

The price is computed as shown below:

= Annual dividend / required rate of return

= $ 3.34 / 3.59%

= $ 93.04 Approximately

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Answer 2

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Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $3.34...

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