Question: 8
(Choose 1 answer)
Ajax Company has issued perpetual preferred stock with a par of $100 and a dividend of 5.5 percent. If the
required rate of return is 7.75 percent, what is the preferred stock's current market price? (Round to two decimal
places.)
A. $12.90
B. $70.97
C. $53.27
D. $62.14
