In 2004,Smiths Corp

Multiple Choice

In 2004,Smiths Corp.issued a $50 par value preferred stock that pays a 6 percent annual dividend.Due to changes in the overall economy and in the company's financial condition investors are now requiring an 7 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) $42.86
B) $30.00
C) $31.54
D) $33.38
E) $38.37