Question
A preferred stock pays a $10 annual dividend, paid out as $10 per year, in perpetuity. The value of the preferred stock is basically the
A preferred stock pays a $10 annual dividend, paid out as $10 per year, in perpetuity. The value of the preferred stock is basically the PV of the payments. If you discount these payments at 8.000% compounded annually, what is the PV?
Answer in $, to two decimal places i.e. $x,xxx.xx
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Financial Markets And Institutions
Authors: Jeff Madura
13th Edition
0357130790, 978-0357130797
