Lane, Inc., has an issue of preferred stock outstanding that pays a $5.55 divide

Question

Lane, Inc., has an issue of preferred stock outstanding that pays a $5.55 dividend every year in perpetuity. If this issue currently sells for $92 per share, what is the required return? (Round your answer to 2 decimal places. (e.g., 32.16)) SHOW YOUR WORK

Lane, Inc., has an issue of preferred stock outstanding that pays a $5.55 dividend every year in perpetuity. If this issue currently sells for $92 per share, what is the required return? (Round your answer to 2 decimal places. (e.g., 32.16)) SHOW YOUR WORK

Explanation / Answer

required return = payment / present value

required return = 5.55/92

required return = 6.03%

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