Central Staircase Is Offering Preferred Stock Which Is Commonly Referred

question 53

Multiple Choice

Central Staircase is offering preferred stock which is commonly referred to as 10-10 stock. This stock will pay an annual dividend of $10 a share starting 10 years from now. What is this stock worth to you today if you desire a 16 percent rate of return?

• A) $14.48
• B) $16.43
• C) $17.07
• D) $17.84
• E) $18.21