Bavarian Sausage,Inc.has preferred stock outstanding.This stock pays a semiannual dividend of $1.25.If the next dividend is paid six months from now and the annual required return is 10%,what should be the value of the preferred stock?

Name: Bavarian Sausage,Inc.has preferred stock outstanding.This stock pays a semiannual dividend of $1.25.If the next dividend is paid six months from now and the annual required return is 10%,what should be the value of the preferred stock?
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Question

Quizplus · Accepted Answer

1.25/(.10/2)= 25