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Tesla has prefered shares that have a face value of $150 and 8% annual dividend and next diviend is due one year from today. If
Tesla has prefered shares that have a face value of $150 and 8% annual dividend and next diviend is due one year from today. If shares trade for $65
1.What is the discount rate? 2.After today tesla is suspending prefered dividends and expects only to resume paying 3 years from now. Discount rates is 15.4%. What is the price now assuming this is a non cumualitve prefered share?
3.What is the price now assuming this is a cumulative preferred share where all payments will be made at the same time that regular dividends restart
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