Yankee Athletic Club has preferred stock with a par value of $70 and an annual 6​% cumulative dividend. Given the following prices for the preferred​ stock, what is each investor seeking for his or her​ return?   a.  Alex is willing to pay ​$40. b.  Derek is willing to pay ​$25. c.  Marcia is willing to pay ​$15. d.  Johnny is willing to pay ​$5.

Question
Yankee Athletic Club has preferred stock with a par value of $70 and an annual 6​% cumulative dividend. Given the following prices for the preferred​ stock, what is each investor seeking for his or her​ return?
 
a.  Alex is willing to pay
​$40.
b.  Derek is willing to pay
​$25.
c.  Marcia is willing to pay
​$15.
d.  Johnny is willing to pay
​$5.

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