What is the value of stock given required rate of return

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Reference no: EM132014653

Courtesy Bancorp issued perpetual preferred stock a few years ago. The bank pays an annual dividend of $4.27, and your required rate of return is 12.2 percent.

a. What is the value of the stock given your required rate of return?

b. Should you buy this stock if its current market price is $34.41? Explain.

Kindly write the answer in MS words..

Reference no: EM132014653

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