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4. A share of preferred stock for Allstate Corporation (ALL) pays a $3.58 annual dividend and the market or required return on similar investments is

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4. A share of preferred stock for Allstate Corporation (ALL) pays a $3.58 annual dividend and the market or required return on similar investments is 7.0%. The company's coupon bonds yield 2.5% annually, Estimate the price or value per share of preferred stock. I 5. A company's common stock paid a $2.13 dividend for the year just ended, and the dividend growth rate has been 4% for several years. The market or required rate of return on similar investments is 10 percent. Assume the P/E Ratio for similar companies is 12, and the company's Return on Equity is 27 percent. Its Earnings per Share is $4.26. Estimate the Price (P) or value per share using the Dividend Growth Model. 6. A company's common stock paid a $2.13 dividend for the year just ended, and the dividend growth rate has been 4% for several years. The market or required rate of return on similar investments is 10 percent. Assume the p/E Ratio for similar companies is 12, and the company's Return on Equity is 27 percent. Its Earnings per Share is $3.81. Estimate the Price (P) or value per share using the price/Earnings Model

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