« previous next »

Author Question: A share of preferred stock pays a quarterly dividend of 2.50. If the price of this preferred stock ... (Read 158 times)

james0929

  • Hero Member
  • *****
  • Posts: 586
on: Jul 10, 2018
A share of preferred stock pays a quarterly dividend of 2.50. If the price of this preferred stock is currently 50, what is the nominal annual rate of return?
 
  A) 12
  B) 18
  C) 20
  D) 23
  E) 28

Question 2

Versalife Inc. just paid a dividend of 1.32 on its common stock, and the next dividend will be paid one year from now. You require a return of 6. What is the market price of this stock if there is no growth in annual dividends?
 
  A) 1.26
  B) 12.00
  C) 20.68
  D) 22.00

Question 3

Universal Export's preferred shares pay a 6.5 annual dividend on a 50-par value. The next dividend is due in one year. The required return of preferred shareholders is 9. What is the fair price for the preferred shares?
 
  A) 3.25
  B) 36.11
  C) 50.00
  D) 53.25
  E) 69.23


meganlapinski

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jul 10, 2018
Answer to Question 1

Awesome help, super fast

Answer to Question 2

wohoo thank youuu.

Answer to Question 3

You are a life saver.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Mixed Inhibitors, mixed enzyme preferred Mixed Inhibitors, mixed enzyme preferred
How to calculate annuity when compounded quarterly (Part 2) How to calculate annuity when compounded quarterly (Part 2)
Stock Market Question Stock Market Question
Chiropractor (stock image) Chiropractor (stock image)
Identical twins (monozygotic twins) have the same sex and share a single genotype. Identical twins (monozygotic twins) have the same sex and share a single genotype.
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Video: Autonomic Nervous System Animation

For a complete list of videos, visit our video library