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A preferred stock has a $100 par value and a dividend payout of $5 every 6 months. Your required rate of return is 10%. What is the value of the preferred stock?
A. $50
B. none of these answers
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D. $75
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The value of a preferred stock is the stated annual dividend divided by the required rate of return on preferred stock.
In this case, V = $10 a year/.10 = $100
NEW QUESTION: 3
Is this component part of the HPE ConvergedSystem 700 for an HPE Client Visualization solution?
Possible Solution:HPE MSA 2040
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B. No
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Feedbacks
Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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Eleanore - 2014-09-28 16:36:48