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3. Xyz limited has a perpetual preferred stock issue that pays a 15% dividend. The par value of each share is K85. The s
Posted: Wed Apr 06, 2022 9:04 am
by answerhappygod
- 3 Xyz Limited Has A Perpetual Preferred Stock Issue That Pays A 15 Dividend The Par Value Of Each Share Is K85 The S 1 (31.02 KiB) Viewed 34 times
3. Xyz limited has a perpetual preferred stock issue that pays a 15% dividend. The par value of each share is K85. The stocks are currently trading for K90. The going rate of interest in the market is 12%. Which of the following statements is true for this stock? Explain with calculations. i. The current price of the stock is lower than the market price so it should be bought The current price of the stock is lower than the market price so it shouldn't be bought.