What is the dividend yield the capital gains yield

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Reference no: EM13940824

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 is the dividend yield, the capital gains yield, and the expected rate of return of the stock?

Annual dividend ........$8.00
Discount rate .......... 12% 

Reference no: EM13940824

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