Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Explore our Q&A platform to find reliable answers from a wide range of experts in different fields. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
Answer:
$29.17
Explanation:
Calculation for how much would you be willing to pay for one share of the preferred stock
Using this formula
Amount willing to pay=Preferred stock annual dividend/Required rate of return on preferred stock
Let plug in the formula
Amount willing to pay=$3.50 per share/0.12
Amount willing to pay=$29.166
Amount willing to pay=$29.17 (Approximately)
Therefore how much would you be willing to pay for one share of the preferred stock is $29.17
We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.