Question: I will thumbs up A preferred stock will pay a dividend of $3.00 in the upcoming year and every year thereafter; i.e., dividends are not

I will thumbs up A preferred stock will pay a dividend

of $3.00 in the upcoming year and every year thereafter; i.e., dividends

I will thumbs up

A preferred stock will pay a dividend of $3.00 in the upcoming year and every year thereafter; i.e., dividends are not expected to grow. You require a return of 9% on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock. $0.27 $33.33 $31.82 $56.25 Many stock analysts assume that a mispriced stock will None of the options are correct. gradually approach its intrinsic value over several years. return to its intrinsic value within a few days. immediately return to its intrinsic value. never return to its intrinsic value

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