What is the market price of this stock based on its dividend

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Assume you work for a company that has issued 10000 shares of $100 par 5% preferred. The return of stock of this risk class is 6%.

1. What is the market price of this stock based on its dividend?

2. If there were 100,000 shares of $50.00 market value common, what would the weight of the preferred stock be in the weighted average cost of capital?

3. What is the expected price of one share of preferred stock?

Reference no: EM131524255

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