Question
Wild Berries Inc.'s preferred shares have a par value of $60 and are selling for $50. What is the required rate of return if the
Wild Berries Inc.'s preferred shares have a par value of $60 and are selling for $50. What is the required rate of return if the preferred shares pay an annual dividend of 6.0%?
a) 11.11%
b) 6.00%
c) 7.2%
d) 5.00%
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
