Considering an issue of preferred stock

Assignment Help Financial Management

Reference no: EM131975855

Jako is considering an issue of preferred stock. The preferred stock will have a perpetual life, a $25 par value and the preferred dividend will be 8.2% of the par value. A major shareholder suggests putting a 20 year maturity on the preferred stock. If Jayco takes the suggestion, what will happen to the share price assuming nothing else changes. Hint this is just like a bond but the face value is 25. For the problem you can assume the dividends are annual.

Reference no: EM131975855

Questions Cloud

How much would jim have to pay at the end of the year : How much would Jim have to pay at the end of the year? If Jim choose this option what would his monthly payments be?

Example of recent merger and acquisition online : Look for an example of a recent merger/acquisition online. Why is important to understand the mistakes made in a budget in order to take action for the future?

Debt-equity ratio-what is the initial cost of the plant : What is the initial cost of the plant if the company raises all equity externally?

What are the real-macroeconomic and aggregate : Give a brief explanation of what are the real, macroeconomic, aggregate, nondiversifiable risk that are proxied by the returns of the [RM-RF],

Considering an issue of preferred stock : Jako is considering an issue of preferred stock. what will happen to the share price assuming nothing else changes.

What will happen to share price assuming nothing else change : Jako is considering an issue of preferred stock. what will happen to the share price assuming nothing else changes.

Example of recent merger-acquisition online : Look for an example of a recent merger/acquisition online. Why is important to understand the mistakes made in a budget in order to take action for the future?

Discuss three different methods to track budget : How would you track a budget? Discuss three different methods to track a budget.

Result with the actual percentage change in the bond price : Compare the result with the “actual” percentage change in the bond price.

User Account

All Pages