What is the stocks required rate of return
Question: Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred stock sells for $55 a share. What is the stock's required rate of return?
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The preferred stock sells for $55 a share. What is the stock's required rate of return?
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The required rate of return on the stock, rs, is 13%. What is the value per share of the company's stock?
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