a. Create a list of preferred shares traded on the TSX using the Globe Investor filter at www. globeinvestor.com/v5/content/filters. Select “Preferred” from the “Security” menu. Find BCE’s Series T preferred shares, which pays an annual dividend of $.85. Use the current share price to calculate the expected rate of return on the share.
b. Go to www.cibc.com/ca/investor-relations/share-info/preferred-shares.html and download the list of CIBC preferred shares. Using the Globe Investor filter in (a), see if you can match the listed preferred shares of CIBC with their trading prices. Using the dividend discount model, calculate the discount rate for each preferred share.