Preferred Products has issued preferred stock with an annual dividend of $7.59 that will be paid...

 

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Preferred Products has issued preferred stock with an annual dividend of $7.59 that will be paid in perpetuity. a. If the discount rate is 11%, at what price should the preferred sell? Note: Round your answer to 2 decimal places. Current price b. At what price should the stock sell 1 year from now? Note: Round your answer to 2 decimal places. Future price c. What are () the dividend yield; (ii) the capital gains yield; (ii) the expected rate of return of the stock? Note: Enter your answers as a whole percent. (1) Dividend yield (8) Capital gains yield (8) Expected rate of return % % 56 Preferred Products has issued preferred stock with an annual dividend of $7.59 that will be paid in perpetuity. a. If the discount rate is 11%, at what price should the preferred sell? Note: Round your answer to 2 decimal places. Current price b. At what price should the stock sell 1 year from now? Note: Round your answer to 2 decimal places. Future price c. What are () the dividend yield; (ii) the capital gains yield; (ii) the expected rate of return of the stock? Note: Enter your answers as a whole percent. (1) Dividend yield (8) Capital gains yield (8) Expected rate of return % % 56

Answer rating: 100% (QA)

a To calculate the price at which the preferred stock should sell we can use the formula for the pre... View the full answer