Wednesday
April 16, 2014

Homework Help: business math- check my answers please

Posted by Melly on Wednesday, May 4, 2011 at 7:17pm.

A share of perpetual preferred stock pays an annual dividend of $6 per share. If the investors require a 12% rate of return, what should be the price of this preferred stock? a. $57.25, b. $50.00, c. $62.38, $46.75, e. $41.64.

I chose b. $50 because $50 x 12% = $6...is this correct?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - You purchase XYZ company's perpetual preferred stock, which pays a ...
math - NVM's preferred stock currently has a market price equal to $80 per share...
umdnj - A company has preferred stock that can be sold for $21 per share. The ...
principles of finance - You are considering the purchase of XYZ Company's ...
Finance. PLEASE HELP ME - 1) growth rates The stock price of the company is $76 ...
college business - A company’s perpetual preferred stock currently trades at $80...
investments - In 2004, Montpellier inc.issued a $100 par value preferred stock ...
Finance questions - 1) growth rates The stock price of the company is $76 ...
math - mary has outstanding preferred stock That pays a dividend of $4 per share...
finance - A company’s perpetual preferred stock currently trades at $80 per ...

Search
Members