Glacier Inc. preferred stock has a 5% stated dividend percentage, and a $100 par value. What is the

value of the stock if your required rate of return is 6% per year?

A) $100.00 B) $83.33 C) $94.05 D) $30.00


B

Business

You might also like to view...

It is logical that there would be a high correlation between ratios that are rated to be highly significant and ratios that are included in corporate objectives

Indicate whether the statement is true or false

Business

Companies that define their missions in terms of products or technologies are considered myopic primarily because ________

A) products and technologies result in low returns on investment B) consumer preferences with regard to products and technology are difficult to predict C) consumer preferences for different product categories vary from time to time D) products and technologies eventually become outdated E) most consumers are not comfortable using sophisticated technology during the buying process

Business

Take particular care to avoid __________________ in a British context

a. passive voice b. gobbledygook c. jargon d. abbreviations

Business

Given the rate information in the table below, estimate the nominal rate for a AA-rated corporate bond

Assume a liquidity premium of 8 basis points. Identify as part of your answer the inflation risk premium, the default risk premium, the maturity premium, and the liquidity premium. 3-month T-bills 2.0% 30-year Treasury bonds 5.0% AA-rated corp. bonds 8.0% Inflation Rate 1.0%

Business