Question
Graphical Designs is offering 15-15 preferred stock. The stock will pay an annual dividend of $15...
Graphical Designs is offering 15-15 preferred stock. The stock will pay an annual dividend of $15 with the first dividend payment occurring 15 years from today. The required return on this stock is 4.85 percent. What is the price of the stock today?
$309.28
$144.96
$159.36
$151.99
$148.48
Answers
Value at time 14 = payment at 15 + rate = $309.28 [$15 dividedby 4.85 %] preferred stock today = $159.36 [309.28 dividedby 1.0485^14
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