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Basic Question 2 of 4

Estimate the value of a preferred stock with $100 par value, a $15 dividend, and a 12% required return.

A. $100
B. $125
C. $150

User Contributed Comments 2

User Comment
sarath Preferred stock is like a perpetuity...
accounting YES
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

calculate the intrinsic value of a non-callable, non-convertible preferred stock

CFA® 2025 Level I Curriculum, Volume 3, Module 8.