Question

molen inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $4.50 per share. if the required return on this preferred stock is 6.5%, then at what price should the stock sell?

Answer 1

$69.23 price should the stock sell.

Price of preferred stock = Annual dividend / Required rate

Price of preferred stock = 4.50 / 6.5%

Price of preferred stock = $69.23

Inventory includes all the stocks through which possession of a organization or corporation is divided. A unmarried share of the inventory approach fractional ownership of the company in percentage to the full quantity of shares.

Stocks represent ownership in a publicly traded agency. when you buy a corporation's inventory, you end up element-proprietor of that agency. as an example, if a employer has 100,000 stocks, and you buy 1,000 of them, you personal 1% of the agency.

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