Moraine, Inc., has an issue of preferred stock outstanding that pays a $3.50 dividend every year...

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Moraine, Inc., has an issue of preferred stock outstanding that pays a $3.50 dividend every year...

Moraine, Inc., has an issue of preferred stock outstanding that pays a $3.50 dividend every year in perpetuity. If this issue currently sells for $85 per share, what is the required return?

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Answer 1

Answer #1

required return=Annual dividend/Current price

which is equal to

=(3.5/85)

which is equal to

=4.12%(Approx).

answered by: ANURANJAN SARSAM

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Answer 2

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