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Basic Question 0 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
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User Contributed Comments 2

User Comment
sarath Preferred stock is like a perpetuity...
accounting YES
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

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

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