What is the value of a preferred stock where the dividend rate is 14 percent on a $100 par value, and the markets required yield on similar shares is 12 percent ...

To value preferred stock we use equ ...

What is the value of a preferred stock where the dividend rate is 14 percent on a

Question:

What is the value of a preferred stock where the rate is 14 percent on a $100 par value, and the market’s required yield on similar shares is 12 percent?

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...