Question
Home Depot (HD) issued preferred stock shares at a face value of $100 per share with a yield at the time of issuance of 10%
Home Depot (HD) issued preferred stock shares at a face value of $100 per share with a yield at the time of issuance of 10% 3 years ago. The shares are currently selling for $120 per share.
- What is the total return of an investor who bought the shares at issuance and held to today (ignore taxes)?
- What return should an investor buying them today expect?
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The Handbook Of Financing Growth
Authors: Kenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser, D. L. Williams
2nd Edition
0470390158, 978-0470390153
