7 You own 200 shares of Somner Resources preferred stock, which currently sells for $40 per share and pays annual dividends of $3.40 per share. a. What is your expected return? b. If you require an 8 percent return, given the current price, should you sell or buy more stock? 8 You are planning to purchase 100 shares of preferred stock and must choose between stock in Kristen Corporation and Titus Corporation. Your required rate of retuin is 9 percent. If the stock in Kristen pays a dividend of $ and is selling for $23 and the stock in Titus pays a dividend of $3.25 and is selling for $31, which stock should you choose? 9 You own 150 shares of James Corporation preferred stock at a market price of $22 per share. James pays dividends of $1.55. What is your expected rate of return? If you have a required rate of retum of 9 percent, should you buy more stock? 10. You are considering the purchase of 150 shares of preferred stock. Your required retuin is 11 percent. If the stock is currently selling for $40 and pays a dividend of $5.25, should you purchase the stock? 11. (Common stockholder' expected return) The common stock of Zaldi Co. is selling for $32.84 per share. The stock recently paid dividends of $2.94 per share and has a projected constant growth rate of 9.5 percent. If you purchase the stock at the market price. what is your expected rate of return? 11. The market price for Hobait common stock is $43 per share. The price at the end of 1 year is expected to be $48. and dividends for next year should be $2.84. What is the expected rate of retum? 7 You own 200 shares of Somner Resources preferred stock, which currently sells for $40 per share and pays annual dividends of $3.40 per share. a. What is your expected return? b. If you require an 8 percent retuin, given the current price, should you sell or buy more stock? 8 You are planning to purchase 100 shares of preferred stock and must choose between stock in Kristen Corporation and Titus Corporation. Your required rate of retuin is 9 percent. If the stock in Kristen pays a dividend of $2 and is selling for $23 and the stock in Titus pays a dividend of $3.25 and is selling for $31, which stock should you choose? 9 You own 150 shares of James Corporation preferred stock at a market price of $22 per share. James pays dividends of $1.55. What is your expected rate of return? If you have a required rate of return of 9 percent, should you buy more stock? 10. You are considering the purchase of 150 shares of preferred stock. Your required retum is 11 percent. If the stock is currently selling for $40 and pays a dividend of $5.25. should you purchase the stock? 11. (Common stockholder expected return) The common stock of Zaldi Co. is selling for $32.84 per share. The stock recently paid dividends of $2.94 per share and has a projected constant growth rate of 9.5 percent. If you purchase the stock at the market price. what is your expected rate of return? 11. The market price for Hobait common stock is $43 per share. The price at the end of 1 year is expected to be $48. and dividends for next year should be $2.84. What is the expected rate of retum? intis