Is there a way to do this on a spreadsheet? If so, please show me.
Fuel, Inc., has an issue of preferred stock outstanding that pays a $4.50 dividend every year, in perpetuity. If this issue currently sells for $46 per share, what is the required return?© BrainMass Inc. brainmass.com June 3, 2020, 4:44 pm ad1c9bdddf
The problem is simple; you don't have to use infinite series of dividends to calculate ...
The solution computes the problem without the use of Excel by explaining a simple method to arrive at the answer.