Question
Tim Tools has issued preferred stock that offers investors a 20% annual return. The stock currently sells for $100, and the next dividend will be
Tim Tools has issued preferred stock that offers investors a 20% annual return. The stock currently sells for $100, and the next dividend will be paid in one year. How much is the dividend?
| a. | $ 16 |
| b. | $ 18 |
| c. | $ 20 |
| d. | None of the above |
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
