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You own 200 shares of Somner Resources' preferred stock, which currently sells for $43 per share and pays annual dividends of $3.90 per share. If
You own 200 shares of Somner Resources' preferred stock, which currently sells for $43 per share and pays annual dividends of $3.90 per share. If the market's required yield on similar shares is 8 percent, should you sell your shares or buy more?
a. The value of the stock to you is $nothing per share.(Round to the nearest cent.)
b. Should you sell your shares or buy more?
You (should buy more shares / should sell the shares) because the stock is currently (overpriced / underpriced) in the market.
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