Question: Omega / Alpha Ltd. sold a Preferred stock issue 3 years ago. This Preferred stock has a maturity 20 years from its issue date and pays a $3.00 annual dividend which provides a 12% to its original investors. Since this Preferred stock was sold interest rates (our old friend krf) have increased, and if O / A were to sell like Preferred stock today it would carry a 15% return to its original investors.
Calculate the current market price of this issue of O / A's Preferred stock.