Acme Inc. has an outstanding issue of preferred stock that has a par (maturity value) of $75.00.

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Acme Inc. has an outstanding issue of preferred stock that has a par (maturity value) of $75.00. The stock, which pays a quarterly dividend of $1.10, will be retired by the firm in 20 years. If the preferred stock is currently selling for $68.00, what is the preferred stock's yield-to-maturity?

a. 1.68%

b. 3.36%

c. 6.72%

d. 5.04%

Posted Date: May 19, 2024 10:08 AM

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Acme Inc. has an outstanding issue of preferred stock that has a par (maturity value) of $75.00.

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