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Author Question: Wernam Hogg Class A preferred shares have a par value of $100 and offer an annual dividend at 0.8% ... (Read 139 times)

notis

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on: Apr 25, 2021
Wernam Hogg Class A preferred shares have a par value of $100 and offer an annual dividend at 0.8% of par value. Wernam Hogg Class A Preferred shares paid their annual dividend yesterday and are currently priced at $16 to yield 5%. 

The central bank is threatening to tighten monetary policy. The chief economist predicts that all interest rates will rise by 2% over the coming year (the yield on the Wernam Hogg Class A Preferred shares will also rise to 7%). 

If you sell your Wernam Hogg Class A Preferred shares in one year after the interest rate increase (and after the next dividend), then what return will you have earned on the investment assuming that you bought at today's price?
◦ -89.7%
◦ -28.6%
◦ -23.6%
◦ 5.0%
◦ 21.3%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by notis on Apr 25, 2021

Kingjoffery

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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notis

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Reply 2 on: Apr 25, 2021
Excellent

bimper21

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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