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Conor Airlines Inc. recently issued $50 par value preferred stock that pays a 8.25% dividend rate per year. Yahoo.finance shows that the stock has a
Conor Airlines Inc. recently issued $50 par value preferred stock that pays a 8.25% dividend rate per year. Yahoo.finance shows that the stock has a beta of 0.97. The current risk-free rate is 2.50% and the market return is 11%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?
$38.39 |
$40.87 |
$39.99 |
$41.30 |
$41.57 |
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