Multiple Choices
dividend of $5 per share and a par value of $30. If the required return on this stock is currently 20 percent , What should be the stock’s market value? Kp = 5 / 30 (1 – 0) = 17% 17% = 30 ? 20% = 30*17/20 = 25.0 a. $150 b. $100 c. $ 50 d. $ 25 e. $ 10 Preferred stock value 26. A share of preferred stock pays a quarterly dividend of $2.50. ................
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