5A (Value and Expected rate of return on preferred stock)
February 19th, 2023
5A (Value and Expected rate of return on preferred stock)Question 2Glant Co. has just issued preferred stock with a par value of $100 and an annual dividend rate of 8.53 percent. If your required rate of return is 9.25 percent, how much will you be willing to pay for one share of this preferred stock?