An Allied Northern preferred stock pays a $3.84 annual dividend. What is the value of the stock at a 9.5 percent return?

Name: An Allied Northern preferred stock pays a $3.84 annual dividend. What is the value of the stock at a 9.5 percent return?
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Question

Quizplus · Accepted Answer

The value of the stock is $40.42. This is calculated by dividing the annual dividend by the return rate. In this case, the annual dividend is $3.84 and the return rate is 9.5 percent. Therefore, the value of the stock is $3.84 / 0.095 = $40.42.

An Allied Northern Preferred Stock Pays a $3