Replies to post #189 on W2007 Grace Acquisition I, Inc. (fka WGCBP)

[Enterprising Investor]

Aren't you forgetting something?

PFD Holdings, LLC was buying dollar bills for far less than a dollar.

An 8 percent rate on a $25 par preferred stock produces $2.00 in annual dividends. If an investor paid $8.33 per share, the cash rate of return would be 24 percent per year ($2.00/$8.33).

In my case, if the all of the dividends are paid, it would represent nearly twice my cost. I would still be owed par.

PFD Holdings, LLC is no different.