Question
If GM Series A preferred shares pay a $4.40 per share dividend in perpetuity, and are trading for $110 per share, what is the yield
If GM Series A preferred shares pay a $4.40 per share dividend in perpetuity, and are trading for $110 per share, what is the yield (equivalently, expected return; equivalently, discount rate) on those shares?
- 4.4%
- 5.5%
- 8.0%
- 4.0%
- 3.2%
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
