The gordon growth model says div/er-gr so shouldn’t it be 6/0,095-0,03=92,3077
Who says the dividend on a preferred stock grows?
Usually they are constant.
here you are told “6% dvd on $100 par” nothing about it growing.
Aha okay so the div on preferred stocks are usually constant and the only required rate on return in this case is the yield on comparable preferred stock issues.