Express Surgery Centers (ESC) preferred stock, which has a par value equal to $110 per share, pays

Question:

Express Surgery Center’s (ESC) preferred stock, which has a par value equal to $110 per share, pays an annual dividend equal to 9 percent of the par value. If investors require a 15 percent return to purchase ESC’s preferred stock, what is the stock’s market value?

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,...

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