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Author Question: Wernam Hogg Class A preferred shares have a par value of $100 and offer an annual dividend at 0.8% ... (Read 25 times)

storky111

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on: Apr 25, 2021

Question 1

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?
◦ $1.26
◦ $12.00
◦ $20.68
◦ $22.00

Question 2

Wernam Hogg Class A preferred shares have a par value of $100 and offer an annual dividend at 0.8% of par value. Wernam Hogg is experiencing cash flow problems due to poor market conditions in the commercial paper business. The company has suspended dividends on the Class A preferred shares. Analysts do not expect the dividends to resume for another 3 years, at which point they are expected to resume in perpetuity. If investors require a return of 2.25%, then what is the fair price for the preferred shares today?
◦ $34.01
◦ $34.77
◦ $35.56
◦ $96.65
◦ $340.08
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by storky111 on Apr 25, 2021

Mholman93

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Reply #1 on: Apr 25, 2021
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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storky111

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

lkanara2

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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