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Author Question: What is the value of a preferred stock that pays a 5.55 dividend to an investor with a required rate ... (Read 56 times)

jrubin

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What is the value of a preferred stock that pays a 5.55 dividend to an investor with a required rate
  of return of 10?
 
  A) 45 B) 27.83 C) 22.22 D) 55.50

Question 2

How is preferred stock affected by a decrease in the required rate of return?
 
  A) The dividend increases.
  B) The dividend yield increases.
  C) The dividend decreases.
  D) The value of a share of preferred stock increases.


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CharlieArnold

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jrubin

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Reply 2 on: Jul 10, 2018
Wow, this really help


sarah_brady415

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

 

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