Problem:
Willie's Western Corp. has outstanding nonconvertible preferred stock (cumulative) that pays a quarterly dividend of $1.25.
Required:
Question: If your required rate of return is 9.5%, what should you be willing to pay for 1000 shares of Willie's Western?
- $52,631.58
- $52,621.58
- $52,611.58
- $52,601.58
Note: Provide support for rationale.