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A. (6 marks) B. AG Motor's common stock currently pays an annual dividend of $3.60 per share. The required return on the common stock is

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A. (6 marks) B. AG Motor's common stock currently pays an annual dividend of $3.60 per share. The required return on the common stock is 12%. If dividends are expected to grow at a constant annual rate of 6%, what is the current market price of the common stock? Don Coley wishes to estimate the value of its outstanding preferred stock. The preferred issue has a $180 par value and pays an annual dividend of $16.40 per share. Similar-risk preferred stocks are currently earning an 18% annual rate of return. What is the market price of the outstanding preferred stock? If, at present, you have $28 000 invested at a rate of 9% per annum, approximately how many years will it take for the investment to triple? (3 marks) (5 marks) C. D. If you wish to save $1 500 000 in five years, how much would you need to deposit at the start of each quarter to achieve this goal, assuming an interest rate of 8% compounded quarterly. (6 marks) (Total 20 marks)

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