The return on the preferred stock, Finance Basics

Assignment Help:

BAC is considering an issue of preferred stock.  The dividends are 8.12% of the $25 par value.

a.    If the present price is $26.25 per share, what is the return on the preferred stock?

b.    Assume the preferred stock will mature in 20 years.  If the price is $26.25 per share, what is the return on the preferred stock? HINT: This is just like a bond, but the face value is 25.  For the problem, you can suppose the dividends are annual.


Related Discussions:- The return on the preferred stock

Explain trade liberalisation, Problem 1 a) Explain Trade Liberalisatio...

Problem 1 a) Explain Trade Liberalisation and give your views whether emerging economies should adopt trade liberalization protectionist measures to attain economic growth.

Please help!!, The following information pertains to Fairways Driving Range...

The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will

Determine tax cash flows & irr, An industrial engineer proposed the purchas...

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms.  The engineer though that the system would provide a

Preparing contract note in the stock exchange, Preparing Contract Note in t...

Preparing Contract Note in the Stock Exchange Clerk takes the details of the day's transaction to the broker at the end of working day. Broker scrutinizes all transactions o

Taxes, ADan lives in Duncan, a small town in Arizona. Because of a rare blo...

ADan lives in Duncan, a small town in Arizona. Because of a rare blood disease, Dan is required to take special medical treatments once a month. The closest place these treatments

Determine the npv of a company, Example of NPV Value A company is fac...

Example of NPV Value A company is faced along with the following five (5) investment opportunities as:   Cost NPV P.I = Total P.v

Roa - return on assets, ROA - Return on Assets The Average of the ...

ROA - Return on Assets The Average of the industry ROA was 10.02% for 2004, 6.81% for 2005, and 7.32% for 2006. The chart showed that Lenovo had a little bit higher ROA th

Determine the firms eps, The operating income of H Ltd amounts to Rs. 18600...

The operating income of H Ltd amounts to Rs. 186000. It pays 35% tax on its income. Its capital structure consists of the following: 14% Debentures

Return on the annuity, An insurance company offers you and end of year annu...

An insurance company offers you and end of year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9%. What is the most you would be willin

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd