Villalpando Winery wrts to rase $15 million from the sale of prefemed stack. It the winery warts to sel one milion shares of prefened stock, whut ama dvdend will it have to promise it investors demand a retum of a. 11%? b. 15%? d. 76? f. 3%? a Whut aw dividend will it have to promise it vestos demand a retun of 1N?

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Villalpando Winery wrts to rase $15 million from the sale of prefemed stack. It the winery warts to sel one milion shares of prefened stock, whut ama dvdend
will it have to promise it investors demand a retum of
a. 11%?
b. 15%?
d. 76?
f. 3%?
a Whut aw dividend will it have to promise it vestos demand a retun of 1N?
Transcribed Image Text:Villalpando Winery wrts to rase $15 million from the sale of prefemed stack. It the winery warts to sel one milion shares of prefened stock, whut ama dvdend will it have to promise it investors demand a retum of a. 11%? b. 15%? d. 76? f. 3%? a Whut aw dividend will it have to promise it vestos demand a retun of 1N?
Expert Solution
Step 1

Total capital to be raised = $15 million

Number of share to be sold = 1 million.

So, price per share =15 million1 million=$15/share

Now,

Expected return = Annual dividend ÷ price per share

Annual dividend = expected return ×price per share

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