Apfel preferred stock offers a dividend of $1.77 per share. If you demand a return of...

Apfel preferred stock offers a dividend of $1.77 per share. If you demand a return of 8% on your investment, what will you be willing to pay per share? (Enter the number only with 2 decimal places. Do not enter $ or % or any other symbol.)

Expert Solution

We know that,

For a preferred stock, Price per share = Dividend / rate

= 1.77 / 0.08

= $22.125 Answer

Kindly do inform me in case you have any queries.

jeff jeffy answered 2 years ago

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