question archive A particular issue of CIBC preferred shares will pay a $1
A particular issue of CIBC preferred shares will pay a $1
Subject:MathPrice: Bought3
A particular issue of CIBC preferred shares will pay a $1.70 per share dividend at the end of every calendar quarter until they are redeemed (bought back by CIBC) 5, years from now. On the redemption date, a shareholder will receive the $16 par value of each share in addition to the last regular dividend. What is the fair market value of a share if preferred shares of similar risk are generating a total rate of return of 6 2% compounded semiannually? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Market value 2.38 X
