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Author Question: Assume that you would like to purchase 100 shares of preferred stock that pays an annual dividend of ... (Read 103 times)

Pea0909berry

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Question 1

An 8 percent preferred stock with a market price of $110 per share and a $100 par value pays a cash dividend of
◦ $4.00.
◦ $80.00.
◦ $8.00.
◦ $8.80.
◦ $32.00.

Question 2

Assume that you would like to purchase 100 shares of preferred stock that pays an annual dividend of $6 per share. However, you have limited resources now, so you cannot afford the purchase price. In fact, the best that you can do now is to invest your money in a bank account earning a simple interest rate of 6%, but where interest is compounded daily (assume 365 days). Because the preferred stock is riskier, it has a required annual rate of return of 12% (assume that this rate will remain constant over the next 5 years). For you to be able to purchase this stock at the end of 5 years, how much must you deposit in your bank account today, at t = 0?
◦ $2,985.00
◦ $4,291.23
◦ $3,138.52
◦ $3,704.18
◦ $4,831.25


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Marked as best answer by Pea0909berry on Apr 25, 2021

popopong

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Pea0909berry

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Reply 2 on: Apr 25, 2021
Excellent


fatboyy09

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Reply 3 on: Yesterday
Wow, this really help

 

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