Voltanis Corp. has preferred stock outstanding that will pay an annual dividend of $4.11 every year...

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Question

Voltanis Corp. has preferred stock outstanding that will pay an annual dividend of $4.11 every year...

Voltanis Corp. has preferred stock outstanding that will pay an annual dividend of $4.11 every year in perpetuity. If the stock currently sells for $100.01 per share, what is the required return?

A. 4.70%

B. 4.11%

C. 3.70%

D. 3.85%

E. 2.43%

business finance

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Answer 1

Answer #1

B. 4.11%

Required return = Dividend / Stock price

Required return = $4.11 / $100.01

Required return = 0.0411 or 4.11%

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Answer 2

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Voltanis Corp. has preferred stock outstanding that will pay an annual dividend of $4.11 every year...

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Voltanis Corp. has preferred stock outstanding that will pay an annual dividend of $4.11 every year...

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