Hammond Pipes has issued a preferred stock that pays $12 per share. The dividend is fixed and

Question:

Hammond Pipes has issued a preferred stock that pays $12 per share. The is fixed and the stock has no expiration date. What is the intrinsic value of Hammond preferred stock, assuming a of 15%?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... 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...