What is the price of one share of stock


You are considering the purchase of xyz company's perpetual preferred stock, which pays a perpetual annual dividend of $8 pershare. if the appropriate discount rate for this investment is 14%, what is the price of one share of stock?

1)7.02

2)36.43

3)57.14

4)80

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Finance Basics: What is the price of one share of stock
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