The preferred stock of Dallas Platinum Exchange has a par value of $65.00 and pays a 7.25%
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Question:
The preferred stock of Dallas Platinum Exchange has a par value of $65.00 and pays a 7.25% dividend rate per year. You calculated a beta of 1.05 for the stock. The risk-free rate is 2.7% and the market return is 9.2%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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