单选题
The preferred stock of the Delco Investments Company has a par value of $150 and a dividend of $11.50. A shareholder's required return on this stock is 14%. What is the maximum price he would pay? A. $82.14. B. $150.00. C. $54.76.
【正确答案】
A
【答案解析】Value of preferred = D/kp = $11.50/0.14=$82.14.