Question
LTM, Inc. has an issue of preferred stock whose par value is $1,000. The preferred stock pays a 4.5% dividend. If investors required a 5.5%
LTM, Inc. has an issue of preferred stock whose par value is $1,000. The preferred stock pays a 4.5% dividend. If investors required a 5.5% rate of return for these shares, what price should the preferred stock sell for?
A. $611.11
B. $508.33
C. $409.09
D. $818.18
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
2nd Edition
0131471988, 978-0131471986
