Manic Corporation issued 200,000 preferred shares with a book value of $10 million three years ago.If the required return is 8.42% and the current market value of these preferred shares is $9.5 million,what is the annual dividend?

Name: Manic Corporation issued 200,000 preferred shares with a book value of $10 million three years ago.If the required return is 8.42% and the current market value of these preferred shares is $9.5 million,what is the annual dividend?
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Quizplus · Accepted Answer

(9,500,000*8.42%)/200,000=$4.00

Manic Corporation Issued 200,000 Preferred Shares with a Book Value