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Georgia [21]
3 years ago
8

Preferred stock has a par (face) value of $80. The annual dividend is $6.00 per share. Investors in this preferred stock have a

required rate of return equal to 8%. Compute the current price of a share of the preferred stock.
Round to the second decimal place.
Business
1 answer:
umka2103 [35]3 years ago
7 0

Answer: $75

Explanation:

Using the Gordon Growth Model:

Price of stock = Next year dividend / (Required return - growth rate)

Growth rate is 0% as dividend does not change per year.

Price of stock = 6 / 8%

= $75

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Dan sells newspapers. Dan says that a 4 percent increase in the price of a newspaper will decrease the quantity of newspapers de
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<h3>What is the price elasticity of demand?</h3>

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The plant union is negotiating with the Eagle Company, which is on the verge of bankruptcy. Eagle has offered to pay for the emp
nexus9112 [7]

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d. a., b., and c.

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B. $4000                             0.15                                  $600

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Hello there,

<span>C. managing executive recruitment and retention.

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Hope this helps.

~Jurgen</span>
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