Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.10 dividend every year, in perpetuity. If this issue currently sells for $80.15 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.10
dividend every year, in perpetuity.
If this issue currently sells for $80.15 per share, what is the required return? (Do not
round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Required return
%
Transcribed Image Text:Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $5.10 dividend every year, in perpetuity. If this issue currently sells for $80.15 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return %
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