Preferred products has issued preferred stock

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Reference no: EM131182596

Preferred Stock. Preferred Products has issued preferred stock with an $8 annual dividend that will be paid in perpetuity.

a. If the discount rate is 12%, at what price should the preferred sell?

b. At what price should the stock sell 1 year from now?

c. What are the dividend yield, the capital gains yield, and the expected rate of return of the stock?

Reference no: EM131182596

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