Kansas City Southern Preferred 4% (NYSE: KSU-P), issued 2 January 1963, has a par value of $25

Question:

Kansas City Southern Preferred 4% (NYSE: KSU-P), issued 2 January 1963, has a par value of $25 per share. Thus, a share pays 0.04($25) = $1.00 in annual dividends. The required return on this security is estimated at 5.5 percent. Estimate the value of this issue.

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