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.

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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Given correct answer general Accounting question

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.
Transcribed Image Text: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.
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