business math- check my answers please
posted by Melly .
A share of perpetual preferred stock pays an annual dividend of $6 per share. If the investors require a 12% rate of return, what should be the price of this preferred stock? a. $57.25, b. $50.00, c. $62.38, $46.75, e. $41.64.
I chose b. $50 because $50 x 12% = $6...is this correct?