04.07.2022 - 00:05

If a preferred stock from Pfizer Inc. (PFE) pays $8.00 in annual dividends, and the required return on the preferred stock is 7.00%, what’s the value of the stock?

Question:

If a preferred stock from Pfizer Inc. (PFE) pays $8.00 in annual dividends, and the required return on the preferred stock is 7.00%, what’s the value of the stock?

Answers (1)
  • Delpha
    April 12, 2023 в 22:23
    The value of the preferred stock can be calculated by dividing the annual dividend payment ($8) by the required return (7%) in decimal form (0.07). Value of preferred stock = Annual dividend payment / Required return Value of preferred stock = $8 / 0.07 Value of preferred stock = $114.29 Therefore, the value of the preferred stock from Pfizer Inc. is $114.29.
Do you know the answer?

Leave a comment

Not sure about the answer?
Find the right answer to the question If a preferred stock from Pfizer Inc. (PFE) pays $8.00 in annual dividends, and the required return on the preferred stock is 7.00%, what’s the value of the stock? by subject Business, and if there is no answer or no one has given the right answer, then use the search and try to find the answer among similar questions.
Search for other answers
New questions in the category: Business
Authorization
*
*

Password generation