Answer:
a. Is there a pain we can alleviate at an attractive price?
The answer is $76.54 Let us use 3 months as our period. Thus, we restate the annual required rate of9.25% as a quarterly (or three-month) rate of = 2.3125% (or 0.023125). Applying the constant dividend model with infinite horizon and with the quarterly rate of return and a quarterly dividend of $1.77, we get: = $76.54<span>.
Price of Preferred Stock = Dividend / required return of rate - growth rate</span>
Answer:$2:09
Explanation: If you subtract the 2 you will get your answer! :)
(Sorry I just read the question wrong)
