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In a recent interview, Warren Buffett commented on Berkshire Hathaway's investment in Occidenial Petroleum Cop's prefered stocks, specscaly on is high dividend yield. Occidental Petroleum
In a recent interview, Warren Buffett commented on Berkshire Hathaway's investment in Occidenial Petroleum Cop's prefered stocks, specscaly on is high dividend yield.
Occidental Petroleum offers preferred stock which is referred to as 10-10 stock, meaning that this stock will pay a dividend yield of 10% on a par value of $100 per share starting 10 years from now. What is this stock worth to preferred stock shareholders today if they require a rate of return of 6.25%?
A. 160.00
B. $87.26
C. 82.13
D. 92.72
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