Question
The company LOG, Inc. decided to carry out an expansion project for which it needed additional funds. Preferred shares were issued that pay $6 in
The company LOG, Inc. decided to
carry out an expansion project for which it
needed additional funds. Preferred shares were
issued that pay $6 in dividends, with an even
value of $ 60. These shares are being sold in the
market for $ 50 per share. If the similar
alternatives at risk at your disposal yield 15%,
you
to.
I would buy the shares because they are worth
more than they cost.
b.
I would not buy the shares because their market
value is below par value.
C.
There is not enough information to reach a
conclusion.
d.
I would not buy the shares because they cost
more than they are worth.
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