Please give handwritten Preferred Products has issued preferred stock with an annual dividend of $6.20 that will be paid in perpetuity.a. If the discount rate is 10%, at what price should the preferred sell? (Round your answer to 2 decimal places.)Current price62.00b. At what price should the stock sell 1 year from now? (Round your answer to 2 decimal places.)Future price62.00c. What are the () the dividend yield; () the capital gains yield; (ill) the expected rate of return of the stock? (Enter your answers as awhole percent.)이%이%(0)Dividend yield(i)Capital gains yield10 %(i)Expected rate of return

The price of preferred stock in perpetuity = Annual dividend/discount rate

Answered: Preferred Products has issued preferred…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 4P

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