Question
You own 300 shares of Dalton Resources preferred stock, which currently sells for $30.46 per share and pays annual dividends of $4.75 per share. a.
You own 300 shares of Dalton Resources preferred stock, which currently sells for $30.46 per share and pays annual dividends of $4.75 per share.
a. Your expected return is percent.(Round to two decimal places.)
b. If you require a return of 7 percent, the value of the stock for you is $enter your response here. (Round to the nearest cent.)
Because the expected rate of return is greater than or less than your required rate of return or the intrinsic value, or because the current market price is less than or greater than $67.86, the Dalton Resources preferred stock is undervalued or overvalued and you should sell or buy the stock.(Select from the drop-down menus.)
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