What price would a share of preferred stock trade


Response to the following questions:

1. What is the relation between the price-earnings ratio and the growth rate of dividends?

2. If the dividend rate on preferred stock is reset every year to the going market yield on preferred stocks of similar risk, at what price would a share of preferred stock trade?

If possible, please give examples to better understand your answers.

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Financial Accounting: What price would a share of preferred stock trade
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