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BonitaMechanical Ltd.'s preferred shares have a par value of $50, a dividend rate of6.6percent, and trade at a price of $60.WindsorInc.'s preferred shares have a
BonitaMechanical Ltd.'s preferred shares have a par value of $50, a dividend rate of6.6percent, and trade at a price of $60.WindsorInc.'s preferred shares have a par value of $60, have a dividend rate of4.4percent, and trade at a price of $40.
Which company's preferred stock is riskier?(Round answers to 2 decimal places, e.g. 5.17%.)
Required rate of return for:
- BonitaMechanical Ltd.%
- WindsorInc.%
Whichis the riskier preferred stock?
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