What is the value of a share of Halton Hotel company A $2

Finance Dec 25, 2020

What is the value of a share of Halton Hotel company A $2.16 preferred stock to an investor requiring a 9% rate of return? Assume dividends are paid annually. O $25.50 O $21.60 O $27.00 $24.00

Expert Solution

Value of share = Annual dividend / required rate

Value of share = 2.16 / 0.09

Value of share = $24.00

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