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
How are strikes damaging to workers and companies?
Answers (2)
The contribution margin ratio: Group of answer choices Cannot be used in conjunction with other analytical tools. Is the percent of each sales dollar that remains to cover the variable and fixed costs.
Answers (2)
In which of the following steps of the new product development process (NPD) does concept testing occur? a. Launch b. Idea generation c. Development d. Idea screening e. Testing
Answers (1)
A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $35,200, and an ending finished goods inventory of $18,700. The cost of goods sold for this company is: A.
Answers (1)
How does the pay-as-you-go procedure apply to wage earners? To persons who have income from sources other than wages?
Answers (1)
New Questions in Business
Which action is characteristic of voluntary simplicity? a. learning to live with much less b. working more to provide for more family wants c. using products with greater environmental impact d. adding more possessions that last longer e.
Answers (1)
When Peter celebrated his 25th anniversary at the company, he felt that the gold watch he was given was just a meaningless trinket and he was glad that he had balanced his work with family life. Peter is in the stage of development called:
Answers (1)
Select all the parts in a financial plan net worth statement savings account financial goals savings and investings plan insurance plan budget checkbook register
Answers (1)
What is aggregate demand
Answers (2)
If you work for a company that will match $2 for every $1 contributed, up to 5% (the company will put up to 5%) of your salary of $50,000, what is the maximum amount of free money from the company that you can earn this year?
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?