What is the yield to maturity on a share of Western Canada's Hospitality Properties "A Series" $2.38 preferred stock to an investor who buys the preferred stock at $28.50? Assume dividends are paid annually.

Question

Quizplus · Accepted Answer

The yield to maturity (YTM) for a preferred stock can be calculated using the formula: YTM = (Annual Dividend / Current Price) * 100. Here, the annual dividend is $2.38, and the current price is $28.50. Thus, YTM = ($2.38 / $28.50) * 100 = 8.35%.

What Is the Yield to Maturity on a Share of Western