8. Adams Co. has an issue of preferred stock outstanding that pays a $5.50 dividend every year in perpetuity. If the required return of this stock is 5%, what is the selling price per share? * O a) $110 b) $112. O c) $113 d) $114 e) None of the above 12. You have just invested in a bond that offers an annual coupon rate of 6%, with interest paid annually. The face value of the bond is $1,000 and the interest rate in the market is 5%. The bond matures in 10 years. What is the bond's price? * a. $1,000 O b. $1,077.21 O c. $957 d. $1,050.28 O e. None of the above 16. Suppose you held a diversified portfolio consisting of 10 different common stocks, investing $500 in each stock. The portfolio's beta is 1.9. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 0.8 for $500 and use the proceeds to buy another stock with a beta of 1.25. What would your portfolio's new beta be? * O a) 1.074 O b) 2.025 Oc) 3.865 O d) 4.2 O e) None of the above E 38 minutes ago 20. Antiques R Us is a mature manufacturing firm. The company just paid a $10.46 dividend, but management expects to reduce the payout by 4 percent per year indefinitely. If you require an 11.5 percent return on this stock, what will you pay for a share today? * O a. $61.56 O b. $74.71 O c. $94.05 O d. $64.78 O e. None of the above