The Jones Company plans to issue preferred stock with a perpetual annual dividend of $5 per share and a par value of $30. If the required return on this stock is currently 20%, what should be the stock's market value?
a. $ 50
b. $150
c. $ 25
d. $ 10
e. $100

c) $25

Explanation:

The value of a preferred stock is the present value of the constant dividend payable for the foreseeable future discounted at the required rate of return

Price = Constant dividend/ required return

The constant dividend = Dividend rate × par value

Dividend as be given as $5 per share

requited return - 20%

So the price of the stock would be

Price = 5/0.2

= $25

it is a i took the test.

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;