A companys perpetual preferred shares pay a semiannual dividend of $1.50. The next dividend will be paid

Question:

A company’s perpetual preferred shares pay a semiannual of $1.50. The next will be paid tomorrow.
a. At what price would the shares provide an investor with a 4.5% semiannually compounded rate of return? The investor will receive tomorrow’s If the shares are trading at $70, what nominal rate of return will they provide to a purchaser?
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...