Wednesday 6 June 2012

Tri State Pickle Company preferred stock pays a perpetual annual

Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. If investors’ required rate of return on this stock is 15%, what is the value of per share?
A.   $6.00 B.   $37.50 C.   $16.67 D.   $15.00
 

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