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Coronado Corporation has issued $1 million in preferred shares to investors with a 6.95 percent annual...

Coronado Corporation has issued $1 million in preferred shares to investors with a 6.95 percent annual dividend rate on a par value of $100. Assuming the firm pays dividends indefinitely and the required rate is 9.5 percent, calculate the price of the preferred shares. (Round answer to 2 decimal places, e.g. 15.61.)

Preferred share price $
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Answer #1

price of preferred shares = annual dividend/rate of return

= 100 * 6.95%/0.095

= 73.16

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