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    nutjob's Avatar
    nutjob Posts: 1, Reputation: 1
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    #1

    Jul 6, 2007, 01:23 PM
    Required rate of return
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    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's Avatar
    MPeinado Posts: 1, Reputation: 1
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    #3

    Jul 15, 2007, 10:24 AM
    Vp = D/RP
    $60=$5/rp
    r hat p = 5/60
    rp = 8.3%
    Lily33's Avatar
    Lily33 Posts: 8, Reputation: 1
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    #4

    Jan 23, 2011, 08:16 AM
    Comment on MPeinado's post
    Hi.. I think yr ans is correct..
    Lily33's Avatar
    Lily33 Posts: 8, Reputation: 1
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    #5

    Jan 23, 2011, 08:17 AM
    Comment on MPeinado's post
    Sorry... I sent wrong message to u..
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