Answer:
$25
Explanation:
The computation of the price of the preferred stock is shown below:
Price of the preferred stock = Annual dividend ÷ expected rate of return
= $3 ÷ 12%
= $25 per share
Simply we divide the annual dividend by the expected rate of return so that the correct price of preferred stock can be computed
All other information which is given is not relevant. Hence, ignored it
This is the answer and the same is not provided in the given options
