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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 C
C. Option D
D. Option A
Answer: D
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. $88.89
B. not enough information to calculate it
C. $92.24
D. $85.67
Answer: A
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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