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Author Question: A share of preferred stock pays a dividend of 0.50 each quarter. If you are willing to pay 20.00 for ... (Read 129 times)

viki

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A share of preferred stock pays a dividend of 0.50 each quarter. If you are willing to pay 20.00 for this preferred stock, what is your nominal (not effective) annual rate of return?
 
  A) 10
  B) 8
  C) 6
  D) 12
  E) 14

Question 2

If Genco's preferred stock pays a dividend of 5 per share and its investors require an 8 return, what should its price per share of preferred stock be?
 
  A) 50.00
  B) .40
  C) 62.50
  D) 6.25
  E) 12.75


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ashely1112

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viki

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


TheDev123

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Reply 3 on: Yesterday
Wow, this really help

 

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