What is the value of mildreds tavern corps stock

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Reference no: EM13722794

Mildred's Tavern Corp pays an annual dividend rate of 11.80% on its preferred stock that currently returns 15.81% and has a par value of $100.00. What is the value of Mildred's Tavern Corp's stock?

a. $89.57 b. $111.95 c.$100.00 d. $74.64

Suppose there is high unemployment, which causes interest rates to fall, which in turn pulls the preferred stock's yield to 9.49%. The value of the preferred stock will be _______________________?

Reference no: EM13722794

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