Company Z has a preferred stock outstanding that pays a $9 annual dividend. It has a price of $76. What is the required rate of return (yield) on the preferred stock?
Thanks
Lynn
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Company Z has a preferred stock outstanding that pays a $9 annual dividend. It has a price of $76. What is the required rate of return (yield) on the preferred stock?
Thanks
Lynn
Kp = D/SV
= 9/76
=0.12 or 12%
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