A companys preffered stock pays 500 in annual dividends if


1) A company's preffered stock pays $5.00 in annual dividends. if your required rate of return is 13%. how much will you be willing to pay for one share?

2) What would you pay for a bond that pays an annual coupon of $55, has a face value of $1,000, matures in 5 years, and has a yield to maturity of 8%?

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Financial Management: A companys preffered stock pays 500 in annual dividends if
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