Stock was issued several years agao and carried a fixed dividend of $6 per share. Over time, the yields have gone from 6 % to 14% (RRR).
What was the orginal issue price and what is the current value of this preferred stock?
A preferred stock is a perpetuity and the rate of return(yield) on a perpetuity ...
The solution explains how to calculate the orginal issue price and what is the current value of the preferred stock.