Tri State Pickle Company preferred stock pays a perpetual - 11296

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Price: $1.25
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  • Posted on: Thu 21 Jun, 2012
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Request Description

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

Solution Description

Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/