An issue of preferred stock is paying an annual dividend of $5.The growth rate for the firm's common stock is 12%.What is the preferred stock price if the required rate of return is 10%?
A) $50.00
B) $41.67
C) $22.73
D) $5.00

Question

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The Answer of An issue of preferred stock is paying an annual dividend of $5.The growth rate for the firm's common stock is 12%.What is the preferred stock price if the required rate of return is 10%?
A) $50.00
B) $41.67
C) $22.73
D) $5.00

An Issue of Preferred Stock Is Paying an Annual Dividend