What is the value of the preferred stock

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Reference no: EM132071434

1. A preferred stock has an annual dividend of $8.35, and the required rate of return is 5%. What is the value of the preferred stock?

$8.35

$16.70

$167.00

$170.60

2. What is the weighted average cost of capital (WACC) used for?

to determine a firm’s taxable income

to evaluate fluctuations in the market

to determine the value of a company’s stock

to evaluate investment possibilities

Reference no: EM132071434

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