Required rate of return [Archive]

nutjob

Jul 6, 2007, 01:23 PM

A stock pays a dividend of $5 at the end of each year, the preferred stock sells for $60 a share, What is the required rate of return?

CaptainForest

Jul 6, 2007, 04:05 PM

What do YOU think the answer is?

Make an attempt at the answer, and then we will assist you.

MPeinado

Jul 15, 2007, 10:24 AM

Vp = D/RP
$60=$5/rp
r hat p = 5/60
rp = 8.3%

Lily33

Jan 23, 2011, 08:16 AM

Hi.. I think yr ans is correct..

Lily33

Jan 23, 2011, 08:17 AM

Sorry... I sent wrong message to u..