Ask Question
BusinessBusiness
30 May, 08:14

8-12 Value of a Preferred Stock A preferred stock from Hecla Mining Co. (HLPRB) pays $3.50 in annual dividends. If the required return on the preferred stock is 6.8 percent, what is the value of the stock

+5
Answers (1)
  1. 30 May, 10:38
    0
    Value of stock is $51.47

    Explanation:

    As the preferred dividend is paid by the constant amount or by predetermined rate there is no growth in this case. The price of preferred share is calculated by using perpetuity method.

    Price of the stock = Dividend / rate of return

    Price of the stock = $3.5 / 6.8%

    Price of the stock = $3.5 / 0.068

    Price of the stock = $51.47
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “8-12 Value of a Preferred Stock A preferred stock from Hecla Mining Co. (HLPRB) pays $3.50 in annual dividends. If the required return on ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Q - to raise awareness of what you're advertising without limiting who might see your ads, you should:
Answers (1)
Carson Corporation stock sells for $32 per share, and you've decided to purchase as many shares as you possibly can. You have $56,000 available to invest. What is the maximum number of shares you can buy if the initial margin is 60 percent?
Answers (1)
g Fixed production costs for the Velvet Corporation are budgeted at $80,000, assuming 40,000 units of production. Actual sales for the period were 35,000 units, while actual production was 40,000 units. Actual fixed costs were $70,000.
Answers (1)
Label the following scenarios as examples of elastic, inelastic, or unit elastic demand. When Ruko, a device used to stream movies at home, increases prices by 42% total revenue decreases by 59%.
Answers (1)
You have 20 cookies with the ratio is 2 chocolate chip for every 3 sugar. how many cans will be in each group?
Answers (1)
New Questions in Business
True/False Demand in which quantity demanded drops to zero at the slightest increase in price is called perfectly elastic
Answers (1)
All the following are benefits of attending a community college except that
Answers (1)
What type of theory is the expectancy theory
Answers (1)
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $48,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000.
Answers (1)
What is quotient mean?
Answers (1)
Home » Business » 8-12 Value of a Preferred Stock A preferred stock from Hecla Mining Co. (HLPRB) pays $3.50 in annual dividends. If the required return on the preferred stock is 6.8 percent, what is the value of the stock
Sign Up Forgot Password?