Achi Corp. has preferred stock with an annual dividend of $2.83. If the required return on Achi's preferred stock is 7.5%, what is its price? (Hint: For preferred stock, the dividend growth rate is zero.) Achi's stock price will be $______ (Round to the nearest cent.)
Achi Corp. has preferred stock with an annual dividend of $2.83. If the required return on Achi's preferred stock is 7.5%, what is its price? (Hint: For preferred stock, the dividend growth rate is zero.) Achi's stock price will be $______ (Round to the nearest cent.)
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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Achi Corp. has preferred stock with an annual dividend of $2.83. If the required return on Achi's preferred stock is
7.5%, what is its price? (Hint: For preferred stock, the dividend growth rate is zero.)
Achi's stock price will be $______ (Round to the nearest cent.)
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