Multiple Choice
Horizon Communications stock pays a fixed annual dividend of $3.00. Because of lower inflation, the market's required yield on this preferred stock has gone from 12% to 10%. As a result
A) Horizon's dividend decreased by 6 cents.
B) the value of Horizon's preferred increased by $3.00.
C) the value of Horizon's preferred decreased by $5.00.
D) the value of Horizon's preferred increased by $5.00.
Correct Answer:
Verified
Correct Answer:
Verified
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