Alpha issued a 6% preferred stock 15 years ago (par value $100) . What is it selling for today if the relevant rate of return is now 9%?

A) $38.15
B) $100.00
C) $66.67
D) $75.46

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Preferred Stock

A type of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.

Rate Of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.