Business, 12.08.2020 07:01 skcats7353

Sunny's BBQ Company recently issued $50 par value preferred stock that pays an annual dividend of $16. Analysts estimate that the stock has a beta of 0.96. The current risk-free rate is 2% and the market return is 10.5%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?

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Sunny's BBQ Company recently issued $50 par value preferred stock that pays an annual dividend of $1...