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Determining required rate of return

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James River, $3.38 preferred dividend paying stock, is selling for $45.25. The preferred dividend is non-growing. What is the required return on James River preferred stock?

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Solution Summary

Solution describes the steps to find out required rate of return of a preferred stock.

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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