What is the intrinsic value of this preferred stock

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Reference no: EM13769173

Onnie Banko Swimwear recently issued $75.00 par-value preferred stock that pays a 7.00% dividend rate per year. The stock has a beta of 1.09, and the current risk-free rate is 2.40% and the market return (RM) is 11.80%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?

$42.67

$43.94

$43.28

$43.74

$41.52

Reference no: EM13769173

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