Tri State Pickle Company preferred stock pays a perpetual annual - 3055

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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.  $16.67

C.  $37.50

D.  $15.00

Solution Description

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