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Author Question: Goggle Inc. is planning to pay a quarterly dividend of $0.50 on its perpetual preferred share. The ... (Read 90 times)

bobbysung

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Question 1

National Research Council is considering the establishment of $2 million endowment held in perpetuity of a Visiting Professor chair at UOIT. The ongoing cost will be $12 500 at the end of each month. What monthly compounded nominal rate of return must be earned to fully fund the position?
◦ 7.5%
◦ 0.075%
◦ 0.625%
◦ 6%
◦ 6.25%

Question 2

Goggle Inc. is planning to pay a quarterly dividend of $0.50 on its perpetual preferred share. The market requires a dividend yield of 5% compounded annually on preferred shares of similar risks. What is the fair market value of its perpetual preferred share just after payment of a dividend at the end of the quarter?
◦ $40.74
◦ $20
◦ $20.25
◦ $10
◦ $40


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Marked as best answer by bobbysung on Jun 6, 2019

todom5090

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