What is the per-share value of the company preferred stock

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Question - The Morgan Music Company has common and preferred stock outstanding. The preferred stock pays an annual dividend of $9 per share, and the required rate of return for similar preferred stocks is 8%. The common stock paid a dividend of $2.00 per share last year, but the company expected that earnings and dividends will grow by 30% for the next two years before dropping to a constant 5% growth rate afterward. The required rate of return on similar common stocks is 11%. What is the per-share value of the company's preferred and common stock?

Reference no: EM133129810

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