Author Question: Universal Export's preferred shares pay a 6.5% annual dividend on a $50-par value. The next dividend ... (Read 82 times)

rachel9 · **on:** Apr 25, 2021

Question 1

The preferred stock of Selena Corp. pays a dividend of $1.50 per share. If Selena preferred stock currently sells for $10 per share, the required rate of return is
◦ 15%.
◦ 10%.
◦ 7%.
◦ 12%.
◦ 14%.

Question 2

Universal Export's preferred shares pay a 6.5% annual dividend on a $50-par value. The next dividend is due in one year. The required return of preferred shareholders is 9%. What is the fair price for the preferred shares?
◦ $3.25
◦ $36.11
◦ $50.00
◦ $53.25
◦ $69.23

1_Step_At_ATime · **Reply #1 on:** Apr 25, 2021

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