Question
GE issued preferred stock that had a par value of $100. The preferred stock pays a dividend of 6.50%. Investors require 5.7% today on this stock. What is the value of the preferred stock today? Round to the nearest $1.
(A) $100
(B) $88
(C) $75
(D) $114
(A) $100
(B) $88
(C) $75
(D) $114