Preferred stock from ecology and environment

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Reference no: EM131959888

1. A stock paid a dividend of $1.50 yesterday. The stock is expected to grow at a rate of 4% per year indefinitely. Investors require a return of 13% to invest in this stock. Compute its fair market value.

2. Value of a Preferred Stock If a preferred stock from Ecology and Environment, Inc. (EEI) pays $18.50 in annual dividends, and the required return on the preferred stock is 7.40 percent, what's the value of the stock?

Reference no: EM131959888

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