Find the price of preferred stock


If a $100 par value preferred stock pays an annual dividend of $5 and comparable yields are 10 percent, the price of this preferred stock will be

a. $100
b. $75
c. $50
d. $25

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find the price of preferred stock
Reference No:- TGS0675426

Now Priced at $5 (50% Discount)

Recommended (94%)

Rated (4.6/5)