Issuing perpetual preferred stock


Question: Gary Wells Inc. plans to issue perpetual preferred stock with an annual dividend of $6.50 per share. If the required return on this preferred stock is 6.5%, at what price should the stock sell?

A. $90.37

B. $92.69

C. $95.06

D. $97.50

E.  $100.00

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Finance Basics: Issuing perpetual preferred stock
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