What is the value of a preferred stock when the dividend rate is 14 on a $100 par value The appropriate discount rate for this risk level is 12 Also, explain what happens if the discount rate goes from 12 to 14 ...

Calculation of Value of the Preferred stock Where as Stock ...

What is the value of a preferred stock when the dividend rate is 14% on a $100

Question:

What is the value of a preferred stock when the rate is 14% on a $100 par value? The appropriate for this risk level is 12%. Also, explain what happens if the goes from 12% to 14%.

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...