Metlock Corporation has issued $1 million in preferred shares to investors with a 7.25- percent annual...

 

Transcribed Image Text:

Metlock Corporation has issued $1 million in preferred shares to investors with a 7.25- percent annual dividend rate on a par value of $100. Assuming the firm pays dividends indefinitely and the required rate is 11.60 percent, calculate the price of the preferred shares. (Round answer to 2 decimal places, e.g. 15.61.) Preferred share price $ Metlock Corporation has issued $1 million in preferred shares to investors with a 7.25- percent annual dividend rate on a par value of $100. Assuming the firm pays dividends indefinitely and the required rate is 11.60 percent, calculate the price of the preferred shares. (Round answer to 2 decimal places, e.g. 15.61.) Preferred share price $

Answer rating: 100% (QA)

Calculating the Preferred Share Price for Metlock Corporation Heres how to ... View the full answer