单选题 An analyst gathered the following information about a perpetual preferred stock and a common stock issued by the same company
Par value of preferred stock(per share)
$ 100
Dividend rate for preferred stock
7%
Required rate of return on preferred stock
12%
Last dividend paid or common stock(per share)
$3.00
Constant growth rate for common stock dividend
5%
Required rate of return on common stock
15%
The values of a share of the company's preferred stock and common stock, respectively are closest to Value of preferred stock Value of common stock A. $ 58 $ 29 B. $ 58 $ 32 C. $ 85 $ 29
【正确答案】 B
【答案解析】Value of preferred stock: $ 7.00/0.12=$ 58.33. Value of common stock: $3.15/0.10=$31.50.