8.03A REVIEW PROBLEMS: PREFERRED STOCK EXPECTED RATES OF RETURN 1. A 109, $25 par value preferred stock has a current market price of $30 per share. Assume an infinite holding period and compute the expected rate of return to an investor who purchases the stock at the current market price. (4) 2. A 7.55, $100 par value preferred stock has a current market price of $ 90 per share. Assume an infinite holding period and compute the expected rate of return to an investor who purchases the stock at the current market price. (4) 8.03A REVIEW PROBLEMS: COMMON STOCK EXPECTED RATES OF RETURN 3. A common stock paid a dividend of $5.00 per share this year and dividends are expected to increase by 6 for the indefinite future. The current market price of the stock is $140 per share. Assame an infinite holding period and compute the expected rate of return to an investor (6) A common stock paid a dividend of $2.50 per Share this year and dividends are expected to increase by for the indefinite future. The current market price of the stock is S50 Do share Asuing an infinite holding period compute the expected rate of return to an investor (6) 8.03A REVIEW PROBLEMS: EXPECTED DIVIDEND YIELD 5. A common stock pays a regular quarterly dividend of $.60 per share and the stock has a current market price of $80 per share. Compute the expected dividend yield on the stock. (4) 6. A common stock pays a constant quarterly dividend of $1.50 per share and the stock currently trades at a price of $120 per share. Compute the expected dividend yield on the stock. (4)