Suppose a preferred share pays perpetual QUARTERLY dividends of $0.25
Suppose a preferred share pays perpetual QUARTERLY dividends of $0.25 and has a per annum dividend yield of 6 percent. What is the fair value of this preferred share?
A) $14.67
B) $15.33
C) $16.00
D) $16.67
ANSWER
D
Explanation: D) PV = PMT/r = $.25/0.015 = $16.67.
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.