What is the value of preferred stock

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Reference no: EM131936413

1. What is the value of a preferred stock when the dividend rate is 12 percent on a $125 par? value? The appropriate discount rate for a stock of this risk level is 10 percent. the value of the preferred stock is ______ ?(Round to the nearest? cent.)

2. A 10,000 par value 10-year bond with 8% annual coupons is bought at a premium to yield an annual effective rate of 6%. Calculate the amount of amortization of premium in the 7th year.

Reference no: EM131936413

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