A share of preferred stock for the Buford Pusser Baseball Bat Company just sold for $100 and carries an $8 annual dividend.
a. What is the yield on this stock?
b. Now assume that this stock has a call price of $110 in five years, when the company intends to call the issue. What is this preferred stock’s yield to call?
a. What is the yield on this stock?
b. Now assume that this stock has a call price of $110 in five years, when the company intends to call the issue. What is this preferred stock’s yield to call?
