How much should the preferred stock be worth

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Problem 1: If a Nomura Company preferred share has a residual value of $ 15, a dividend rate of 5.25%, and a required rate of return of 10%, how much should this preferred share be worth?

Problem 2: If a Belmonte Company preferred stock has a residual value of $ 5, a dividend rate of 1.25%, and a required rate of return of 5%. How much should this preferred stock be worth?

Reference no: EM132913383

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