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10. A share of perpetual preferred stock pays an annual dividend of 56 per share. I investon require 12 percent rate of return, what should

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10. A share of perpetual preferred stock pays an annual dividend of 56 per share. I investon require 12 percent rate of return, what should be the price of this preferred stock? $57.25 bS50.00 c. $62.38 d. $46.75 $41.64 11. The last dividend on Spirex Corporation's common stock was 54.00, and the expected growth rate is 10 percent. If you require a rate of return of 20 percent, what is the highest price you should be willing to pay for this stock? a. $44.00 b. $38.50 c. $40.00 d. $45.69 e $50.00 12. You are trying to determine the appropriate price to pay for a share of common stock. If you purchase this stock, you plan to hold it for 1 year. At the end of the year you expect to receive a dividend of $5.50 and to sell the stock for S154. The appropriate rate of return for this stock is 16 percent. What should be the current price of this stock? a $137.50 b. $150.22 c. $162.18 d. $98.25 c. S175.83 13. You are trying to determine the appropriate price to pay for a share of common stock. If you purchase this stock, you plan to hold it for 1 year. At the end of the year you expect to receive a dividend of $5.50 and to sell the stock for $154. The appropriate rate of retum for this stock is 16 percent. What should be the current price of this stock? a $137.50 b. $150.22 C. S162.18 d. $98.25 e. $175.83 14. The last dividend paid by Klein Company was 51.00. Klein's growth rate is expected to be a constant 5 percent for 2 years after which dividends are expected to grow at a rate of 10 percent forever. Klein's required rate of return on equity (1) is 12 percent. What is the current price of Klein's common stock? $21.00 b. $33.33 c. $42.25 d. $50.16 c. 558.75

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