The 800,000 preferred shares of Fantastic Services have a market value of $9,192,000 and a book value of $10,000,000.What is the dividend rate if the risk-free rate is 3.15 percent and the risk premium is 3.65 percent?

Name: The 800,000 preferred shares of Fantastic Services have a market value of $9,192,000 and a book value of $10,000,000.What is the dividend rate if the risk-free rate is 3.15 percent and the risk premium is 3.65 percent?
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Quizplus · Accepted Answer

D = [$9,192,000*(3.15%+3.65%)]/$10,000,000 = 6.25%

The 800,000 Preferred Shares of Fantastic Services Have a Market