Problema Solution
Sony $4.50 preferred is selling for $65.50. The preferred dividend is non-growing. What is the required return on Sony preferred stock?
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Sony $4.50 preferred is selling for $65.50. The preferred dividend is non-growing. What is the required return on Sony preferred stock?
Solution:
Return = $4.50 + $65.50 = $70.00
So the required return on Sony preferred stock is $70.00