Business, 12.08.2020 05:01 amandasantiago2001

Green Caterpillar Garden Supplies pays an annual dividend rate of 13.60% on its preferred stock that currently returns 18.22% and has a par value of $100.00 per share. The preferred stock issue does not mature, and computes its annual dividend as the product of its dividend rate and its par value. What is the current market value of Green Caterpillar’s preferred stock? $80.61 per share $103.00 per share $74.64 per share $65.68 per share Suppose that due to high inflation, interest rates rise and pull the preferred dividend yield to 26.42%. Then the value of Green Caterpillar’s preferred stock will to . This is because interest rates (and security returns) and security values are related. Green Caterpillar Garden Supplies pays an annual dividend rate of 13.60% on its preferred stock that currently returns 18.22% and has a par value of $100.00 per share. The preferred stock issue does not mature, and computes its annual dividend as the product of its dividend rate and its par value. What is the current market value of Green Caterpillar’s preferred stock? $80.61 per share $103.00 per share $74.64 per share $65.68 per share Suppose that due to high inflation, interest rates rise and pull the preferred dividend yield to 26.42%. Then the value of Green Caterpillar’s preferred stock will to . This is because interest rates (and security returns) and security values are related.

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