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27 May 2018
Jones Design wishes to estimate the value of its outstanding preferred stock. The preferrred issue has a par value of $90 and pays an annual dividend of $5.50 per share. Similar risk-preferred stocks are currently earning an annual rate of return of 8.3%
A.) The market value of the outstanding preferred stock is $? per share
B.) If the requred return on the similar-risk preferred stocks has risen to 9.4% the value of the stock will be $?
C.) If an investor purchased the prefered stock at the value calculated in part a and sells the stock when the required return on the similiar risk preferred stocks has risen to 9.4% the gain or loss is $? per share.
Jones Design wishes to estimate the value of its outstanding preferred stock. The preferrred issue has a par value of $90 and pays an annual dividend of $5.50 per share. Similar risk-preferred stocks are currently earning an annual rate of return of 8.3%
A.) The market value of the outstanding preferred stock is $? per share
B.) If the requred return on the similar-risk preferred stocks has risen to 9.4% the value of the stock will be $?
C.) If an investor purchased the prefered stock at the value calculated in part a and sells the stock when the required return on the similiar risk preferred stocks has risen to 9.4% the gain or loss is $? per share.
Tod ThielLv2
27 May 2018
