Question: Please help with the following Case with clear explinations! thank you! Cologne Corporation has preferred stock outstanding that pays a $2.40 dividend. This is typical

Please help with the following Case with clear explinations! thank you!

Cologne Corporation has preferred stock outstanding that pays a $2.40 dividend. This is typical preferred stock in that the dividend is not expected to change for the life of the stock. Based on the risk of Cologne Corporation, you think it is reasonable to expect a return of 11 percent. What is the value of Colognes preferred stock?

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