Federated Holdings recently issued $90 par-value preferred stock that pays a 7% dividend rate per year. You estimate that the stock has a required rate of return of 17%. What is the intrinsic value of this preferred stock?

In a "dutch auction" for new stock, individual investors place bids for shares directly. each potential bidder indicates the price he or she is willing to pay and how many shares he or she will purchase at that price. the highest price that permits the company to sell all the shares it wants to sell is determined, and this is the "market clearing price." all bidders who specified this price or higher are allowed to purchase their shares at the market clearing price. true false