Given correct answer general Accounting question ABC Co., preferred stock has a par value of $156.35 witha preferred dividend rate of 9.41%. If the required rate ofreturn on preferred stock is 9.38%, what is today's priceof preferred stock? Round your answer to two decimalpoints.

Step 1: Define Preferred Dividend IncomePreferred dividend income is the income generated from…

Answered: ABC Co., preferred stock has a par…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 21MC

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ABC Co., preferred stock has a par value of $156.35 with a preferred dividend rate of 9.41%. If the required rate of return on preferred stock is 9.38%, what is today's price of preferred stock? Round your answer to two decimal points.