What Is the Value of a Preferred Stock That Has

question 63

Multiple Choice

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

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