Will the market value of a perpetual preferred share (paying a fixed periodic dividend) rise or fall

Question:

Will the market value of a perpetual preferred share (paying a fixed periodic dividend) rise or fall if the rate of return (dividend yield) required by investors declines? Give a brief explanation.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: