What is the value of the share to the investor

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Reference no: EM132006012

A share of preferred stock is selling for $33 per share in the market and pays a $3.60 annual dividend.

What is the expected rate of return?

If an investor’s rate of return is 10% per annum, what is the value of the share to the investor?

Should that investor purchase the stock? Show step by step how to solve each question showing formulas and or how to solve using excel.

Reference no: EM132006012

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