Valuing Preferred Stock
Suppose you are considering investing in a preferred stock with a stated value (stated_value) of $25, dividend rate (div_rate) of 5%, and cost of preferred equity (kp) of 10%. The cost of preferred equity is the rate used to discount cash flows generated by the preferred stock. Assuming that the growth rate of the preferred dividends is zero, what is the value of the preferred stock?
Note: The variables stated value, div_rate, and kp are stored in memory.
Deze oefening maakt deel uit van de cursus
Equity Valuation in R
Oefeninstructies
- Calculate the amount of preferred dividends.
- Calculate the value of the preferred stock assuming no growth in preferred dividends.
Praktische interactieve oefening
Probeer deze oefening eens door deze voorbeeldcode in te vullen.
# Calculate dividend of preferred stock
div <- ___
div
# Calculate value of preferred stock
pref_value <- ___
pref_value