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Valuing Preferred Stock How stock prices depend on future dividends and dividend growth. The Moraine, Inc., has an issue of preferred stock outstanding that pays
Valuing Preferred StockHow stock prices depend on future dividends and dividend growth. The Moraine, Inc., has an issue of preferred stock outstanding that pays a $3.50 dividend every year in perpetuity. If this issue currently sells for $85 per share, what is the required return? Must use Excel and provide defined formula used in the excel spreadsheet Required rate of return = (dividend/market price)*100
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