What Is the Value of a Preferred Stock That Has

question 34

Multiple Choice

What is the value of a preferred stock that has a par value of $100,a required rate of return of 11%,and pays a 7 percent annual dividend?

• A) $63.64
• B) $157.14
• C) $909.09
• D) $1,428.57
• E) $2,500.00

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Definitions:

Northern European American

Refers to people in the United States who are descendants of immigrants from Northern Europe or identify with cultures from that region.

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