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Showing appropriate work and equations, what is the yield to maturity on a share of Six...

Showing appropriate work and equations, what is the yield to maturity on a share of Six Flags B $1.81 preferred stock if an investor buys the stock at the following market prices. Assume dividends are paid annually.
a) 30 b)25
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Answer #1

Preferred stock yield = dividend/ stock price

a) dividend =$1.81 , stock price =$30

Preferred stock yield = $1.81/$30= 6.033%

b) dividend =$1.81 , stock price =$25

Preferred stock yield = $1.81/$25=7.24 %

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