What is the value of the preferred stock

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Reference no: EM131870070

extra special corporation issued preferred stock in 2012 that had a par value of $50 The stock pays a dividend of 4.5%. Assume that the markets require yield (required rate of return) is 8.0%, and the current price of the preferred stock is $27.50. What is the value of the preferred stock? what is the expected rate of return of the preferred stock? would you purchase the preferred stock for $27.50 if your required rate of return was 8.0%? explain

Reference no: EM131870070

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