At what price should the stock sell


Question: Gary Wells Inc. plans to issue perpetual preferred sotck with an annual dividend of $6.50 per share. If the required return on theis preferred stock is 6.5%, at what price should the stock sell?

a. $90.37
b. $92.69
c. $95.06
d. $97.50
e. $100.00

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Finance Basics: At what price should the stock sell
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