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molen inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $4.50 per share. if the required return on this preferred stock is 6.5%, then at what price should the stock sell? group of answer choices $51.92 $86.54 $63.00 $60.23 $69.23

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anshumanaryan799

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.

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