Q19/20

The Jones Company has decided to undertake a large project. Consequently, there is a need for additional funds. The financial manager plans to issue preferred stock with a perpetual annual dividend of $2.7 per share and a par value of $78. If the required return on this stock is currently 9 percent, what should be the stock's market value? O $28 O $29 Is O $27 O $26 O $30 PLS A share of preferred stock pays a quarterly dividend of $3.5. If the price of this preferred stock is currently $100, what is the nominal annual rate of return? O 13.50% O 13.00% O 14.50% O 15.00% 14.00%