Suppose Toyota has non maturing (perpetual) preferred stock outstanding that pays a $1.00 quarterly dividend and has

Question:

Suppose Toyota has non maturing (perpetual) preferred stock outstanding that pays a $1.00 quarterly and has a required return of 12% APR (3% per quarter). What is the stock worth?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...