A preferred stock recently paid a $0.82 dividend, and the required rate of return is 12%. Which of the following calculates the intrinsic value of this stock in cell B3?
A preferred stock recently paid a $0.82 dividend, and the required rate of return is 12%. Which of the following calculates the intrinsic value of this stock in cell B3?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
A
Transcribed Image Text:A
1 Last Annual Dividend
2 Required Return
3 Intrinsic Value of Stock
O a. (B1*(1-B2))/B2
O b. =B1 B2
O c. =(B1*(1+B2))/B2
O d. =B1/B2
B
0.82
12%
?
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