Question
The preferred shares of Concord Electrical Co. have a par value of $100 and a dividend rate of 8 percent. The current price is $170.
The preferred shares of Concord Electrical Co. have a par value of $100 and a dividend rate of 8 percent. The current price is $170. If the risk-free rate is 2.60 percent, what is the risk premium associated with these preferred shares?(Round answer to 2 decimal places, e.g. 1.61%.)
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Personal Finance
Authors: Jeff Madura
5th edition
132994348, 978-0132994347
