Your firm is considering the issuance of preferred shares for the first time. The average yield on preferred stock for firms in your industry is 6.50%
If you wish to issue preferred stock at par with a face value of $50.00 per share, approximately how large would you need to make your annual preferred dividend?
A) $3.00
B) $3.25
C) $6.50
D) There is not enough information to answer this question.
B
Explanation: B) Div = r * Price = .065 * $50.00 = $3.25.
Business
You might also like to view...
It is difficult to obtain a representative sample in Brazil since the technological infrastructure for gathering market data is minimal
Indicate whether the statement is true or false
Business
Coercive leaders demand immediate compliance and are found to have a positive impact on climate
Indicate whether the statement is true or false
Business