Question
A Corporation preferred stock pays a quarterly dividend of $5.5 per share. Which of the following statements is true for an investor with a required
A Corporation preferred stock pays a quarterly dividend of $5.5 per share. Which of the following statements is true for an investor with a required return of 16%?
| The value of the preferred stock is $5.5 because the dividend is fixed at $5.5 each quarter. | ||
| The value of the preferred stock is $100 per share because thats the price of all preferred stocks. | ||
| The value of the preferred stock is $34.38 per share. | ||
| The value of the preferred stock is $160 per share because of the 16% required return. | ||
| The value of the preferred stock is $137.5 per share. |
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
