Achi Corp. has preferred stock with an annual dividend of $3. If the required return on Achis

Question:

Achi Corp. has preferred stock with an annual of $3. If the required return on Achi’s preferred stock is 8%, what is its price?

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...