a. Create a list of preferred shares traded on the TSX using the Globe Investor filter at

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a. Create a list of preferred shares traded on the TSX using the Globe Investor filter at www. globeinvestor.com/v5/content/filters. Select "Preferred" from the "Security" menu. Find BCE's Series T preferred shares, which pays an annual dividend of $.85. Use the current share price to calculate the expected rate of return on the share.
b. Go to www.cibc.com/ca/investor-relations/share-info/preferred-shares.html and download the list of CIBC preferred shares. Using the Globe Investor filter in (a), see if you can match the listed preferred shares of CIBC with their trading prices. Using the dividend discount model, calculate the discount rate for each preferred share.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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