A firm has the following preferred stocks outstanding:
PFD A: $40 annual dividend, $1,000 par value, no maturity
PFD B: $95 annual dividend, $1,000 par value, maturity after twenty-five years
If comparable yields are 9 percent, what should be the price of each preferred stock?

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The Answer of A firm has the following preferred stocks outstanding:
PFD A: $40 annual dividend, $1,000 par value, no maturity
PFD B: $95 annual dividend, $1,000 par value, maturity after twenty-five years
If comparable yields are 9 percent, what should be the price of each preferred stock?

A Firm Has the Following Preferred Stocks Outstanding