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    Value of preferred stock

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    A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred stock has been estimated to be 10%. Compute the value of the preferred stock.

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    https://brainmass.com/business/business-math/value-preferred-stock-329963

    Solution Summary

    Straight application of formula is examined. The solution assumes that the given required return rate is annual rate.

    $2.19

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