 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
the par value of the preferred stock is $100. Suppose
A preferred stock is expected to pay every quarter into indefinite future, the following dividend yield, dented by DY:
DY = The annualized yield on 3-months Treasury Bill, prevailing at the time of payment +4% The par value of the preferred stock is $100. Suppose the annualized yield on 3-month Treasury Bill is expected to be as: 1.5% at the first quarter, 2% at the end of the 2nd quarter, 2.5% at the end of the 3rd quarter, 3% at the end of the 4th quarter and 4% at the end of the 5th quarter and thereafter into indefinite future. Suppose the required expected rate of return is 6% per annum in the first four quarters and 8% per annum thereafter into indefinite future. Calculate the current price of the preferred stock? |
||||
Check out some similar questions!
IGC has outstanding 40,000 share os noncumulative, 10 percent, $100 par-value preferred stock and 70,000 shares of no-par-value common stock. IGC paid out $360,000 dollare in dividends for the year. What amount will be paid on each share of preferred stock and common stock?
How do I calculate the preferred dividend from 'preferred $10 stock, $40 par 800,000?
preferred $6 stock, $100 par (no change during year)= $200,000. What are the dividends
This is a question off my problem. I am hoping that someone can help. The corporation has stocks of preferred stock with a number of shares of 400 that cost $6,000 and common stock of shares for 300 that cost $9,000. The common stock has purchases on march 30 of 25 shares for the cost of $950 and...
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
