Miller's preferred stock is selling at $54 on the market and pays an annual dividend of $4.20 per share.
a.What is the expected rate of return on the stock?
b.If an investor's required rate of return is 9%,what is the value of the stock to that investor?
c.Considering the investor's required rate of return,does this stock seem to be a desirable investment?

Question

Quizplus · Accepted Answer

The Answer of Miller's preferred stock is selling at $54 on the market and pays an annual dividend of $4.20 per share.
a.What is the expected rate of return on the stock?
b.If an investor's required rate of return is 9%,what is the value of the stock to that investor?
c.Considering the investor's required rate of return,does this stock seem to be a desirable investment?

Miller's Preferred Stock Is Selling at $54 on the Market