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 companys preferred stock is riskier ...

The required rates of return for the two stocks ABC PWT As the ...

Dillon Mechanical Ltd.'s preferred shares have a par value of $50, a dividend rate of 7 percent,

Question:

Dillon Mechanical Ltd.'s preferred shares have a of $50, a rate of 7 percent, and trade at a price of $70. Sherwood Inc.'s preferred shares have a of $60, a rate of 4 percent, and trade at a price of $45. Which company’s preferred stock is riskier?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...