Chapter 7 Question 8 Valuing Preferred Stock 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? Input area: \begin{tabular}{|lrr|} \hline Current dividend & $ & 3.50 \\ Share price & $ & 85.00 \\ \hline \end{tabular} Output area: Required return