Instructions Enter All Answers Directly In This Worksheet When Finished Select S

b. The stock price using the dividend discount model is:

$

Question 10: (10 points) (Preferred stock valuation) Calculate the value of a preferred stock that pays a dividend of $8.00 per share when the market’s required yield on similar shares is 13 percent.

a. The value of the preferred stock is

$

Per share

 
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