In 2004,Montpelier Inc

Multiple Choice

In 2004,Montpelier Inc.issued a $100 par value preferred stock that pays a 9 percent annual dividend.Due to changes in the overall economy and in the company's financial condition investors are now requiring a 10 percent return.What price would you be willing to pay for a share of the preferred if you receive your first dividend one year from now?

A) $100
B) $110
C) $75
D) $90
E) $85