Assuming that there is no capital gains, the value of Fridge-Air's preferred stock value should be $32.14285714285714 or $32.14(2 decimal places).
$4.50 / 14% = $32.14285714285714
The Fridge-Air Company's preferred stock pays a dividend of $4.50 per annually. If the required rate of return on comparable quality stocks is 14 percent, calculate the value of Fridge-Air's preferred stock.
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