Chapter 5, A12. (Required Return for a Preferred Stock) James River $3.38 preferred is selling for $45.25.

Chapter 5, A12. (Required Return for a Preferred Stock) James River $3.38 preferred is selling for $45.25. The preferred dividend is non-growing.

Corporate Financial Management (3rd Edition): Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)

A12. (Required Return for a Preferred Stock)

James River $3.38 preferred is selling for $45.25. The preferred dividend is non-growing. What is the required return on James River preferred stock? SOLUTION