Jako is considering an issue of preferred stock what will


Jako is considering an issue of preferred stock. The preferred stock will have a perpetual life, a $25 par value and the preferred dividend will be 8.2% of the par value. A major shareholder suggests putting a 20 year maturity on the preferred stock. If Jayco takes the suggestion, what will happen to the share price assuming nothing else changes. Hint this is just like a bond but the face value is 25. For the problem you can assume the dividends are annual.

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Financial Management: Jako is considering an issue of preferred stock what will
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