Lancashire railway company pays an annual dividend rate of 9.60% on its preferred stock that currently returns 12.86% and has a par value of $100.00 per share. what is the value of lrc's preferred stock?
a $111.98 per share
b $74.65 per share
c $100.00 per share
d $89.58 per share

Value of stock = 74.65 per share

so correct option is b $74.65 per share

Explanation:

given data

annual dividend rate = 9.60%

returns = 12.86% = 0.1286

par value = $100.00 per share

to find out

preferred stock

solution

we get here first Value of stock tat is express as

Value of stock =   ............1

here dividend is 9.60% ×  100 = $9.60

put here value we get

Value of stock =

Value of stock = 74.65 per share

so correct option is b $74.65 per share

answer; /// i believe the correct answer to the above question is(200 pounds); /good luck

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