Calculate the return on the preferred stock

Reference no: EM1345178

CDE is issuing preferred stock with dividends at 8.12% of the $25 par value.

1. Assuming a price of $26.25 per share, calculate the return on the preferred stock.
2. The preferred stock will reach maturity in 20 years. With annual dividend payments and a price of $26.25 per share, calculate the return.

Reference no: EM1345178

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