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Minimum Annual Dividend for Investors

Dollar, Inc. wants to offer preferred stock for sale at a price of $25 a share. The company wants its investors to earn an 8.25 percent rate of return. What is the minimum annual dividend the firm will need to pay per share?
Answer
$2.06
$3.73
$4.15
$4.90
$1.72

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Dollar, Inc. wants to offer preferred stock for sale at a price of $25 a share. The ...

Solution Summary

Solution explains the computation of minimum annual dividend for investors to earn 8.25%

$2.19