Preferred stock preferred products has issued preferred


Preferred Stock. Preferred Products has issued preferred stock with an $8 annual dividend that will be paid in perpetuity. 

a. If the discount rate is 12%, at what price should the preferred sell?

b. At what price should the stock sell 1 year from now?

c. What are the dividend yield, the capital gains yield, and the expected rate of return of the stock?

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Financial Management: Preferred stock preferred products has issued preferred
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