Ajax Company Has Issued Perpetual Preferred Stock with a Par

question 96

Multiple Choice

Ajax Company has issued perpetual preferred stock with a par of $100 and a dividend of 5.5 percent. If the required rate of return is 7.75 percent, what is the preferred stock's current market price? (Round off to the two decimal places.)

• A) $12.90
• B) $70.97
• C) $53.27
• D) $62.14

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