A preferred stock from Duquesne Light Company (DQUPRA) pays $4.00 in annual dividends.

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Question

A preferred stock from Duquesne Light Company (DQUPRA) pays $4.00 in annual dividends.

If the required return on the preferred stock is 6.90 percent, what's the value of the stock? (Round your answer to 2 decimal places.)

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Answer 1

Answer #1

Value of Preferred Stock = Annual Dividend/Required Rate of Return

Value = $4/6.90%

Value = $57.97

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Answer 2

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A preferred stock from Duquesne Light Company (DQUPRA) pays $4.00 in annual dividends.

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A preferred stock from Duquesne Light Company (DQUPRA) pays $230 in annual dividends.

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A preferred stock from Duquesne Light Company (DQUPRA) pays $4.00 in annual dividends.

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A preferred stock from Duquesne Light Company (DQUPRA) pays $4.00 in annual dividends.