compute the following?

1 ⤊

compute the following?

a share of perpetual preferred stock pays an annual dividend of $6 per share. If investors require a 12% rate of return, what should be the price of this preferred stock?

2007-02-17 06:45:14 · 1 answers · asked by Anonymous in Business & Finance ➔ Investing

1 answers

Hint. Use the dividend discount model.

Normally,

P0 = (D1 + P1)/(1+r)

...................................... You should really do your own home work.

2007-02-17 07:21:53 · answer #1 · answered by InvisibleWar 2 · 1⤊ 0⤋