A preferred stock pays an annual dividend of $2.60. What is one share of this stock worth

Fantastic news! We've Found the answer you've been seeking!

Question:

A preferred stock pays an annual dividend of $2.60. What is one share of this stock worth today if the rate of return is 11.75%

A. $18.48

B. $22.13

C. 25.48

D. 28.80

E. 30.55

Related Book For answer-question

Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

See More Books

Posted Date: Feb 11, 2022 04:58 AM

See More Questions

a) If a preferred stock pays an annual dividend of $6 and investors can earn 10 percent on alternative and comparable investments, what is the maximum price that should be paid for this stock? b) If...
The Ape Copy Companys preferred stock pays an annual dividend equal to $16.50. If investors demand a return equal to 11 percent to purchase Apes preferred stock, what is its market value?
The Zyco Corporation pays an annual dividend of $2.10 per share. On Tuesday it closed at $72 per share with a net change of + 0.95. The dividend remained at $2.10 for several months. a. What was the...
The 2019 catalog that Gigantic State University (GSU) sent to prospective students described a merit-based scholarship called the Eagle Scholarship. The catalog stated that GSU offers the Eagle...
1. Observed response 2. Number of cases in j th group 3. Fitted value 4. Residual 5. Mean of data in omitted category 6. Difference of two sample means 7. Difference of two population means 8. Null...
Explain the difference between an exchange and an OTC market.
A happy Call option is a Call option with payoff $\max (\alpha S, S-K)$. So we always get something with a happy Call! If $C_{1}$ and $C_{2}$ are the prices of two call options with strikes \(n...
On January 1 Borman Company, a lessee, entered into three non-cancelable leases for brand new equipment, Lease J, Lease K, and Lease L. None of the three leases transfer ownership of the equipment to...
A company has 5 3 6 4 2 3 8 shares outstanding and the stock sells at $ 8 4 . 6 4 per share. What is the market value of equity?
BookWeb, Inc., sells books and software over the Internet. A recent article in a trade journal has caught the attention of management because the company has experienced soaring inventory handling...
Jennifer is required to take a $30,000 minimum distribution from her traditional IRA but decided only to take a distribution of $20,000. For what penalty tax, if any, is she liable?
Construct a table for the relative frequencies and the cumulative relative frequencies. Use the following information to answer question. Suppose Weight Watchers has collected the following weight...
Two of your friends separately calculated a magnetic field line integral around a long, straight current-carrying wire in a homework problem, but they arrived at different answers. Now they want your...
Select a developing country that interests you and search for evidence suggesting which factors are the binding constraint on growth. (For inspiration, see the sources in Box 4. 2.) Box 4 . 2 El...
Explore the website of the UN Global Compact initiative, at https://www.unglobalcompact.org/. Click on the heading Engage Locally, and explore some of the companies in your part of the world that...
A horizontal metal strip $1.0 \mathrm{~mm}$ thick and $20 \mathrm{~mm}$ wide carries a 20-A current along its length, and both the length and the width are perpendicular to a uniform magnetic...
Portions of the balance sheet for a small firm are shown below (note the balance sheet does not provide all accounts and thus what is shown doesn't necessarily balance. This should not affect your...
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
An investor sells a stock short for $36 a share. A year later, the investor covers the position at $30 a share. If the margin requirement is 60 percent, what is the percentage return earned on the...
You invest $1,000 a year for ten years at 10 percent and then invest $2,000 a year for an additional ten years at 10 percent. How much will you have accumulated at the end of the 20 years?
What differentiates a deductible IRA from a Roth (nondeductible) IRA? What conditions favor the nondeductible IRA?
A positively charged particle creates the electric field shown in Figure 30. 20. When the kinks in the electric field lines reach the rod, what is the direction of the current induced in the rod?...
Suppose the current shown in Figure 30. 19 discharges the capacitor. What are the directions of $\vec{E}$, $\Delta \vec{E}$, and $\vec{B}$ between the plates of the discharging capacitor? Data...
For the oscillating dipole of Figure 30. 14, sketch the electric field pattern at $t=\frac{5}{4} T$. Data from Figure 30.14 0=1 t = T t=T 1=T O O D

A preferred stock pays an annual dividend of $2.60. What is one share of this stock worth

Question:

Expert Answer:

Rate of return Annual D... View the full answer

Investments An Introduction

Students also viewed these finance questions