TSX:HSE.PR.B - Post by User
Post by
RagingBull3on Nov 17, 2020 8:10am
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Post# 31912952
"Fair Value" = Present Value of Future Dividends ? or
"Fair Value" = Present Value of Future Dividends ? or$25/share as per Terms of the Preferreds?
Preferreds are basically Fixed Income, where rates reset every 5 years. Currently due to extra ordinary events, Covid-19, rates have been reduced to "Effective lower bound" by the BoC.
It would be unreasonable to calculate "Fair Value" based on current amount of Dividends being paid currently..... But even so, PRESENT VALUE of future dividends I'm guessing would be more than $25 for the "C","E","G". The "C" is paying ~$1.17/yr !!!
Following the Terms of the Preferreds seems to me the only "Fair" option.
All just my opinion.