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NEW QUESTION: 1
A. 0
B. 1
C. 2
D. 3
E. 4
Answer: C
NEW QUESTION: 2
A. Option B
B. Option A
C. Option C
D. Option D
Answer: B
NEW QUESTION: 3
A preferred stock has a $100 par value and a dividend payout of $8 per year. Your required return is 9.
What is the value of the preferred stock?
A. $92.24
B. $85.67
C. not enough information to calculate it
D. $88.89
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The value of a preferred stock is the stated annual dividend divided by the required rate of return on preferred stock.
In this case, V = $8/.09 = $88.89
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