Southwest Bankcorp preference shares are selling at $54 on the market and pay an annual dividend of $4.20 per share.
a.What is the expected rate of return on the share?
b.If an investor's required rate of return is 9%,what is the value of the share for that investor?
c.Considering the investor's required rate of return,does this share seem to be a desirable investment?

Question

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The Answer of Southwest Bankcorp preference shares are selling at $54 on the market and pay an annual dividend of $4.20 per share.
a.What is the expected rate of return on the share?
b.If an investor's required rate of return is 9%,what is the value of the share for that investor?
c.Considering the investor's required rate of return,does this share seem to be a desirable investment?

Southwest Bankcorp Preference Shares Are Selling at $54 on the Market