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EastWind [94]
2 years ago
12

Big Oil, Inc. has a preferred stock outstanding that pays an $7 annual dividend. If

Mathematics
1 answer:
Kruka [31]2 years ago
5 0

The change in the price of the stock is $46.67.

<h3>How to calculate the change in price?</h3>

From the information given, the current price will be:

= Annual dividend / Required rate

= 7/0.1

= $70

The market value of the shares will be:

= 7/6%

= 7/0.06

= $116.67

Therefore, the change in the price of the stock will be:

= $116.67 - $70

= $46.67

Learn more about stock on:

brainly.com/question/18124452

#SPJ1

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