An decrease in the ________ will increase the value of preferred stock.
A)expected rate of return
B)life of the investment
C)dividend paid
D)both A and C

Name: An decrease in the ________ will increase the value of preferred stock. A)expected rate of return B)life of the investment C)dividend paid D)both A and C
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

A decrease in the expected rate of return will increase the value of preferred stock because the stock's price is inversely related to the required rate of return.

An Decrease in the ________ Will Increase the Value of Preferred