What is the market value of ost’s preferred stock

Reference no: EM131394084

Out-of-Sight Telecommunications (OST) has preferred stock outstanding with a par value of $40 per share that pays an annual dividend equal to 5 percent.

(a) If investors who purchase similar investments require a 10 percent return, what is the market value of OST's preferred stock?

(b) What would be the market value of the stock if investors require an 8 percent return?

Reference no: EM131394084

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