The Ape Copy Companys preferred stock pays an annual dividend equal to $16.50. If investors demand a

Question:

The Ape Copy Company’s preferred stock pays an annual dividend equal to $16.50. If investors demand a return equal to 11 percent to purchase Ape’s preferred stock, what is its market value?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...