What is the current yield or cost of the preferred stock

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Reference no: EM131055198

NPerpetuity, Inc. issued $1,000 par value preferred stock 20 years ago. The stock provided a 7.50 percent yield at the time of issue. The preferred stock is now selling for $1,162.79. What is the current yield or cost of the preferred stock? (Disregard flotation costs.) (NOTE: Before you even do the calculation, you should be able to easily see whether or not the price will be above or below $1,000….can you see this? Do you understand why?

Reference no: EM131055198

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What is the current yield or cost of the preferred stock : NPerpetuity, Inc. issued $1,000 par value preferred stock 20 years ago. The stock provided a 7.50 percent yield at the time of issue. The preferred stock is now selling for $1,162.79. What is the current yield or cost of the preferred stock?

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