Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Fee Founders has perpetual preferred stock outstanding that sells for $74 a share and pays a dividend of $5 at the end of each year

Fee Founders has perpetual preferred stock outstanding that sells for $74 a share and pays a dividend of $5 at the end of each year

Finance

Fee Founders has perpetual preferred stock outstanding that sells for $74 a share and pays a dividend of $5 at the end of each year. What is the required rate of return? 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

required rate of return=annual dividend/preferred share price=5/74=6.76%

required rate of return=6.76%