Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Part 1
(Preferred stock valuation) Kendra Corporation's preferred shares are trading for
$29
in the market and pay a
$4.70
annual dividend. Assume that the market's required yield is
17
percent.a. What is the stock's value to you, the investor?
b. Should you purchase the stock?
Question content area bottom
Part 1
a. The value of the stock to you, the investor, is
$enter your response here
per share. (Round to the nearest cent.)Expert Solution
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