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Toyota's New Preferred Stock Offering

Toyota has decided to offer new preferred stock for sale that it will call an 8-8 offering. This stock will pay an annual dividend of $8 a share starting 8 years from now. If your required return is 8 percent, how much are you willing to pay for one share of this stock today?

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The preferred stock is a perpetuity and the price will be the ...

Solution Summary

This tutorial calculates the worth of a stock based on an 8 percent required return.

$2.19