Question

Bedeker, Inc., has an issue of preferred stock outstanding that pays a $4.35 dividend every year...

Bedeker, Inc., has an issue of preferred stock outstanding that pays a $4.35 dividend every year in perpetuity. If this issue currently sells for $95 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

please help me with this

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Answer #1

Required rate of return = (dividend / market price ) × 100

= (4.35/95)×100

= 4.58%

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