Question
5.Harley Davidson preferred stock is selling for $44.00 per share and pays an annual dividend of $3.60; if you have a required rate of return
5.Harley Davidson preferred stock is selling for $44.00 per share and pays an annual dividend of $3.60; if you have a required rate of return of 10%, what is the value of the stock and would you buy it?
6. Mouser Corp paid a $3.50 dividend last year, has a constant growth rate of 5%; and your required rate is return is 20%. What is the value of this common stock?
7 & 8
NCR common stock paid $1.32 dividend last year. The dividends are expected to grow at a rate of 8% annually.
a. What is the return of this common stock if the current market price is $23.50
b. If your required rate of return is 10.5% what is the value of the stock to you?
9. Piggly Wigglys stock is price at $64.91 and paid a dividend of $1.10 last year, if they are expected to grow at a rate of 4%, what is the expected rate of return for this investment?
10. You own 200 shares of Microsoft preferred stock, currently priced at $40, with an annual dividend of $3.40. If you are required, an 8% return given the current price should you sell? or buy more
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