Nine Point Industries recently issued $81 par value preferred stock that pays an 7% dividend rate per year. If the stock is currently selling for $81, what is the expected return of this preferred stock?

Nine Point Industries recently issued $81 par value preferred stock that pays an 7% dividend rate per year. If the stock is currently selling for $81, what is the expected return of this preferred stock?

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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Question

Nine Point Industries recently issued $81 par value preferred stock that pays an 7% dividend rate per
year. If the stock is currently selling for $81, what is the expected return of this preferred stock?
SET YOUR CALCULATOR TO 4 DECIMAL PLACES. PLEASE INPUT THE ANSWER IN PERCENT
ROUNDING IT TO 2 DECIMALS. DO NOT INCLUDE % SIGN, E.G., INSTEAD OF 9.9911% INPUT 9.99

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