Question

What should be the prices of the following preferred stocks if comparable securities yield 6 percent? Use Appendix B and Appendix D to answer the questions. Round your answers to the nearest cent.

a. MN, Inc., $12 preferred ($120 par)

$

b. CH, Inc., $12 preferred ($120 par) with mandatory retirement after 19 years

$

Appendix B

$Appendix_B.jpg$

Appendix D

$Appendix_D.jpg$

Answer 1

The question "What should be the prices of the following preferred stocks if comparable securities yield 6 percent?"
1.
=12/6%=200.00

2.
=12*11.158+120*0.331
=173.616