The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value The bank pays a quarterly dividend of $1 65 on this stock What is the current price of this preferred stock given a required rate of return of 11 6 percent ...

The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank

Question:

The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly of $1.65 on this stock. What is the current price of this preferred stock given a required rate of return of 11.6 percent?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...