When estimating the intrinsic market value of equity do you


1. What it the value (price) of a perpetual preferred stock who pays a $ 3 annual dividend and the yield is 5%

Yield = annual dividend / Price of stock

2. When estimating the intrinsic market value of equity do you think it is better to subtract the market values of debt and preferred stock or the book value of each? Explain your answers.

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Financial Management: When estimating the intrinsic market value of equity do you
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