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

Question

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

Miller/Hershey's Preference Shares Are Selling at $54 on the Market