Pay for a share of preferred stock


Problem:

Donald Carter recently bought 100 shares of IMH preferred stock. The preferred stock pays $6 in dividends annually and is currently selling for $75.

Requited:

Question: If your required return is 6% how much are you willing to pay for a share of this preferred stock?

Note: Please show basic calculation

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Accounting Basics: Pay for a share of preferred stock
Reference No:- TGS0888354

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