Morristown Industries Has an Issue of Preferred Stock Outstanding That

question 18

Multiple Choice

Morristown Industries has an issue of preferred stock outstanding that pays a $13.25 dividend every year in perpetuity. What is the required return if this issue currently sells for $80 per share?

• A)16.56 percent
• B)16.72 percent
• C)16.80 percent
• D)16.86 percent
• E)16.95 percent

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