Problema company is offering perpetual preferred stock its, Ask an Expert

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Problem:

A company is offering perpetual preferred stock (its dividend payments last forever) with a fixed annual dividend of $100. If your required rate of return on this investment is 12 percent,

Question: What is the value of each share?

A. $1,000.00

B. $962.00

C. $904.67

D. $833.33

E. $813.67

Please provide explanation, no word limit count.

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Category:- Basic Finance
Reference No.:- M91145645

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