Smiling Elephant, Inc., has an issue of preferred stockoutstanding that pays a $5.60 dividend every year, inperpetuity.

If this issue currently sells for $80.40 per share, what is therequired return? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)

Required return %

Answer rating: 100% (QA)

the formulae for calculating the required return is by taking the ... View the full answer