Author Question: A share of preferred stock pays a quarterly dividend of 2.50. If the price of this preferred stock ... (Read 120 times)

james0929

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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

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Answer to Question 1

Awesome help, super fast

Answer to Question 2

wohoo thank youuu.

Answer to Question 3

You are a life saver.



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