Question something like the merit of Preferred stock (div/k)?

Value of any preferred stock can be calculated by the forumula P = div/k , where k is the required rate of return.

The RRR is the minimum % return an investor expects. What I don't understand is that how come as the RRR INCREASES, the attraction of the preferred stock DECREASE? Why wouldn't the preferred stock be more valuable if the RRR is higher?

for example:

P = $15/.05 = $300
P = $15/.06 = $250

Answers:    The dividend doesn't amendment when the required return changes.

Suppose you buy a preferred stock at a price of $10 and it pays $0.60 per year -- so it is paying 6%. Suppose that the required rate of return goes up to 10%. That finances that if someone pays $10, they expect to get 10% -- which is $1.00 per year. But your stock only pays $0.60. Why would they remuneration $10 for it when they can get a stock that pays more?

They won't -- they will only reward $6.00 for it -- because that would give then a 10% return.

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