Dillon Mechanical Ltd.'s preferred shares have a par value of $50, a dividend rate of 7 percent, and trade at a price of $70. Sherwood Inc.'s preferred shares have a par value of $60, a dividend rate of 4 percent, and trade at a price of $45. Which company’s preferred stock is riskier?
Answer to relevant QuestionsApex Financial Ltd. is interested in investing in Scion Systems Inc. Scion's current dividend is $5.50 and its shares are selling for $40. The required rate of return for firms like Scion is 8 percent. Apex has conducted an ...Describe the characteristics of preferred shares.1. Calculate the capital gain return for a stock that was purchased at $25 one year ago and is now worth $26. It paid four quarterly dividends of $1 per share each throughout the year.a. 4 percentb. 16 percentc. 20 percentd. ...FinCorp Inc. is exploring the risk of different portfolio allocations between two stocks. Complete the followingtable.Calculate the covariance and correlation coefficient between the two securities of a portfolio that has 40 percent in stock X (with an expected return of 40 percent and a standard deviation of 12 percent) and 60 percent in ...
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