What is the value of preferred stock

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Reference no: EM131994470

1. What's the value of a preferred stock if we assume it has an annual dividend $1 per share and the required rate of return is 10%? ______

$ 5

$ 10

$ 50

$ 20

2. How to calculate the nominal risk-free rate? ______

Approximately equal to real risk-free rate.

Approximately equal to real risk-free rate times expected inflation rate.

Approximately equal to real risk-free rate plus the expected inflation rate.

Approximately equal to real risk-free rate minus the expected inflation rate.

Reference no: EM131994470

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