Reference no: EM131055153
A company issued preferred shares two years ago, paying a $3.52 dividend, which offered investors an original yield of 8%. Currently, the required return on companies with preferred shares of comparable risk yield 10%. Given this information, what should these shares be trading for today? Show your answer as a dollar amount, rounded to 1 decimal point.
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Interpreted as measure of the bonds potential return
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Present value of investment that has three cash flows
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Preferred shares of comparable risk yield
: A company issued preferred shares two years ago, paying a $3.52 dividend, which offered investors an original yield of 8%. Currently, the required return on companies with preferred shares of comparable risk yield 10%. Given this information, what sh..
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