Onnie banko swimwear recently issued 7500 par-value


Onnie Banko Swimwear recently issued $75.00 par-value preferred stock that pays a 7.00% dividend rate per year. The stock has a beta of 1.09, and the current risk-free rate is 2.40% and the market return (RM) is 11.80%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?

$42.67

$43.94

$43.28

$43.74

$41.52

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Onnie banko swimwear recently issued 7500 par-value
Reference No:- TGS01039246

Expected delivery within 24 Hours