Hologic, Inc. has an issue of preferred stock that pays a dividend of $4.00. The preferred stockholders require a rate o...

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Hologic, Inc. has an issue of preferred stock that pays a dividend of $4.00. The preferred stockholders require a rate o...

Hologic, Inc. has an issue of preferred stock that pays a dividend of $4.00. The preferred stockholders require a rate of return on this stock of 9%. At what price should the preferred stock sell for? Round off to the nearest $0.10.

A. $62.50

B. $88.80

C. $36.00

D. $44.40

business finance

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Answer 1

Answer #1

Current value is equal to=Annual dividend/required rate

=4/0.09

=$44.40(Approx).

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Answer 2

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Add Answer to: Hologic, Inc. has an issue of preferred stock that pays a dividend of $4.00. The preferred stockholders require a rate o...

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Hologic, Inc. has an issue of preferred stock that pays a dividend of $4.00. The preferred stockholders require a rate o...