PQR, Inc., has an issue of preferred stock outstanding that pays a $3.75 dividend every year, inperpetuity. If this issue currently sells for $35.51 per share, what is the required return in percent?Answer to two decimals.

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Answered: PQR, Inc., has an issue of preferred…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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PQR, Inc., has an issue of preferred stock outstanding that pays a $3.75 dividend every year, in perpetuity. If this issue currently sells for $35.51 per share, what is the required return in percent? Answer to two decimals.