Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

A. overvalued by $11.36. B. undervalued by $15.13. C. undervalued by $36.36.

A company’s $100 par perpetual preferred stock has a dividend rate of7 percent and a required rate of return of11 percent. The company’s earnings are expected to grow at a constant rate of3 percent per year. If the market price per share for the preferred stock is $75, the preferred stock is most appropriately described as being: A. overvalued by $11.36. B. undervalued by $15.13. C. undervalued by $36.36.

user-image
Question ajoutée par Vinod Jetley , Assistant General Manager , State Bank of India
Date de publication: 2014/10/25
Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

A.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

The market value is overvalued by $11.36 as the realistic terms the price could be near $63 where as the market price is $75.  (The calculations are based on intrinsic value of shares and its comparison)

Ibrahim Hussein Mayaleh
par Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

It is A

More Questions Like This

Avez-vous besoin d'aide pour créer un CV ayant les mots-clés recherchés par les employeurs?