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he preferred stocks issued by aaa distributes $3 dividend per share. the required rate of return for similar corporations preferred stock is 14 percent. what is the value per share of these preferred stocks?

Sagot :

In a condition wherein AAA distributed $3 dividend per share, and the required rate of return for similar corporations preferred stock is 14 percent, then the value per share of these preferred stocks will be 21.43.

The required rate of return is the amount of returns expected by the investors over their monetary engagement. For the information provided above, the value of preferred stocks can be computed as below,

Value per Share = Dividend x 100 / Return

Value per Share = 3*100/14

Value per Share = 21.43

Therefore, the value per share will be 21.43.

Learn more about rate of return here:

https://brainly.com/question/24232401

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