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Basic Question 2 of 4
Estimate the value of a preferred stock with $100 par value, a $15 dividend, and a 12% required return.
B. $125
C. $150
A. $100
B. $125
C. $150
User Contributed Comments 2
| User | Comment |
|---|---|
| sarath | Preferred stock is like a perpetuity... |
| accounting | YES |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
calculate the intrinsic value of a non-callable, non-convertible preferred stock
CFA® 2024 Level I Curriculum, Volume 3, Module 8.