The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.50 on this stock. What is the current price of this preferred stock given a required rate of return of 8.0 percent? (Round answer to 2 decimal places, e.g. 15.25.)
Current price =annual dividend/required rate
Current price =(1.50*4)/8%
Current price =75.00
The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The...