14.

The constant growth model used for evaluating the price of a share of common stock may also be used to find the price of perpetual preferred stock or any other perpetuity.

Question 14 options:

True

False

13.

Valdor Industrial Corporation would like to raise $100,000,000 by issuing preferred stock. The preferred stock will have a par value of $1,000 per share and pay a dividend of $55 per year. If the required rate of return for this stock is 14 percent, how many shares of preferred stock must Valdor issue?

Question 13 options:

	393
	71,795
	254,545
	265,332
	347,555