Question

Stana, Inc., has preferred stock outstanding that sells for $100.28 per share. If the required return is 3.96 percent, what is the annual dividend

Answer 1

Answer:

$3.95

Explanation:

Stana incorporation has preferred stock outstanding that is sold at $100.28

The required return is 3.96%

Therefore the annual dividend can be calculated as follows

= 3.96/100.28

= 0.03948 × 100

= 3.95

Hence the annual dividend is $3.95