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Preferred Products has issued preferred stock with an $6.60 annual dividend that will be paid in perpetuity. a. If the discount rate is 11%, at
Preferred Products has issued preferred stock with an $6.60 annual dividend that will be paid in perpetuity. |
a. | If the discount rate is 11%, at what price should the preferred sell? |
Current price | $ |
b. | At what price should the stock sell 1 year from now? |
Future price | $ |
c. | What is the dividend yield, the capital gains yield, and the expected rate of return of the stock?(Leave no cells blank - be certain to enter "0" wherever required.) |
Dividend yield | % |
Capital gains yield | % |
Expected rate of return | % |
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