Dividends are paid and kevin holds stock forever

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Reference no: EM131944612

Someone buys 6000 shares of Preferred Stock at a price of 25.13. The stock is to pay a dividend of $.29(1.02)^k-1 at the endo of each quarter of the k-th year they still hold the stock. That is to say, he receives four successive quartlerly payments of $.29/share, then four successive end of quarter payments at a rate of $.29 (1.02), etc. Find the yield rate for this purchase assuming all dividends are paid and Kevin holds the stock forever.

Reference no: EM131944612

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