Sunday
April 20, 2014

Homework Help: Finance

Posted by nick on Sunday, September 30, 2012 at 5:50am.

1.BAC is considering an issue of preferred stock. The dividends are 8.12% of the $25 par value.
a.If the current price is $26.25 per share, what is the return on the preferred stock?
b.Suppose the preferred stock will mature in 20 years. If the price is $26.25 per share, what is the return on the preferred stock? HINT: This is just like a bond, but the face value is 25. For the problem, you can assume the dividends are annual.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Managerial Finance - A firm has an issue of preferred stock outstanding that has...
Finance - Assume AirJet Best Parts has also a preferred stock issue. The most ...
Finance - SDF Company wants to raise $20,000,000 through issuing preferred stock...
finance - The Meredith Corporation issued $100 par value preferred stock 10 ...
Finance - A firm has $3 million market value and it sells preferred stock with a...
Finance - Preferred stock differs from common stock in that preferred stock: ...
principles of finance - You are considering the of xyz company's perpetual ...
Finance - GE issued preferred stock that had a par value of $100. The preferred ...
math - North Pole Cruise Lines issued preferred stock many years ago. It carries...
Accounting - North Pole Cruise Lines issued preferred stock many years ago. It ...

Search
Members