1.

ADR Bank preferred stock pays an annual dividend of $2.75 per share. If the stock is currently selling for $27.50 per share, what is the expected rate of return on this stock?

Group of answer choices

10.0%

17.5%

27.5%

2.75%

explain

2.

What is the value of a preferred stock that pays a $4.50 dividend to an investor with a required rate of return of 10%?

Group of answer choices

$55.50

$45

$22.22

$27.83

explain

3

Common stock does not mature.

Group of answer choices

True

False

explain

4.

Bin Restaurant Corp preferred stock has a market price of $14.50. If it has a yearly dividend of $3.50, what is your expected rate of return if you purchase the stock at its market price?

Group of answer choices

22.36%

24.14%

41.43%

19.45%

explain

5.

Although under normal operating conditions preferred shareholders do not have voting rights, protective provision generally allow for voting rights in the event of nonpayment of preferred dividends.

Group of answer choices

True

False