Posted by Christie on .
Taylor Inc. has preferred perpetual stock outstanding that has a par value of $100 per share and a dividend yield of 9.4% of stated value. If the appropriate interest rate for Taylor’s preferred stock is 8.3%, how much is each share of preferred stock worth?
Corporate Finance -
Figured it out:
dividend yield x par value divided by interest rate
.094*100/.083 = $113.25