V = D/r
V = value
D = dividend
r = required rate of return
2. For a non-callable, non-convertible preferred stock with maturity at time, n, the value of the stock can be calculated using another formula.
= PV of Dividends received + PV of Final Selling Price of Preferred Stock
= D1/(1+r)^1 + D2/(1+r)^2 + ....... + F/(1+r)^n