Answer:
Current stock price = $1.040
Explanation:
We know,
Current preferred stock price = Preferred dividend ÷ Expected rate of return
Given,
Expected rate of return = 4.69%
Preferred dividend = $4.88
Current preferred stock price = ?
Putting the values into the formula, we can get
Current preferred stock price = $4.88 ÷ 4.69%
Or,Current preferred stock price = $1.040.
Therefore, the current preferred stock price is $1.040.
