You are interested in buying the preferred stock of a bank that pays a dividend of $1 80 every quarter If you discount such cash flows at 8 percent, what is the value of this stock ...

The present value of preferred ban ...

You are interested in buying the preferred stock of a bank that pays a dividend of $1.80

Question:

You are interested in buying the preferred stock of a bank that pays a of $1.80 every quarter. If you discount such cash flows at 8 percent, what is the value of this stock?
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...