Sheridan Energy Company has issued perpetual preferred stock with a stated (par) value of $100 and...

Sheridan Energy Company has issued perpetual preferred stock with a stated (par) value of $100 and a dividend of 7.0 percent. If the required rate of return is 10.00 percent, what is the stock's current market price? (Round answer to 2 decimal places, e.g. 15.25.)

Current market price

Expert Solution

Current market price = Annual dividend / Return

Current market price = ($100 * 0.07) / 0.10

Current market price = $70.00

jeff jeffy answered 2 years ago

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