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A firm has an issue of preferred stock outstanding that has a stated annual dividend of...


A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred stock has been estimated to be 16 percent. The value of the preferred stock is
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Answer #1

Ans $ 25.00

value of the preferred stock = Dividend / Required Return

                                              = 4 / 16%

                                              = $ 25.00

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