If the required return on this preferred stock is 6.5%, then at a $69.23 price should the stock sell.
P0 = D / r
Where,
D is the dividend
r is the required rate of return
PO=4.5/0.065 = $69.23.
A stock is a fashionable term used to describe the ownership certificates of any corporation. A proportion, then again, refers to the stock certificate of a specific agency. maintaining a particular business enterprise's percentage makes you a shareholder. Description: stocks are of two sorts—common and favored.In finance, inventory includes all of the shares through which possession of a business enterprise or employer is split.
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