I need help with these questions please. Thank you! Achi Corp. has preferred stock with an annual dividend of $2.94. If the required return on Achi's preferred stock is7.6%, what is its price? (Hint: For a preferred stock, the dividend growth rate is zero.)Achi's stock price will be $HACILICE(Round to the nearest cent.) Assume Evco, Inc. has a current stock price of $49.67 and will pay a $1.85 dividend in one year, its equity cost ofcapital is 11%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in oneyear to justify its current price?……We can expect Evco stock to sell for $. (Round to the nearest cent.)

Name: I need help with these questions please. Thank you! Achi Corp. has pr
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Description: I need help with these questions please. Thank you! Achi Corp. has preferred stock with an annual dividend of $2.94. If the required return on Achi's preferred stock is7.6%, what is its price? (Hint: For a preferred stock, the dividend growth rate i

Annual dividend= D= $2.94Required rate of return =r= 7.6%Stock price = Annual dividend/ required…

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Achi Corp. has preferred stock with an annual dividend of $2.94. If the required return on Achi's preferred stock is 7.6%, what is its price? (Hint: For a preferred stock, the dividend growth rate is zero.)

Achi Corp. has preferred stock with an annual dividend of $2.94. If the required return on Achi's preferred stock is 7.6%, what is its price? (Hint: For a preferred stock, the dividend growth rate is zero.)

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 4P

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