A CFO plans stock repurchases of $12 million one year from now and $14 million two years from now. Three years from now, she will stop repurchasing shares; instead, she will pay dividends totaling $19 million. After the third year, dividends are expected to grow at a rate of 2% forever. There are 7 million common shares outstanding and the equity cost of capital is 6.9 percent. What is each share of stock worth today? A $1000-par-value bond for Sarvesh Industries matures 20 years from now and pays an annual coupon rate of 7 percent, with interest payments made semiannually. U.S. Government bonds with the same maturity are currently trading at a yield to maturity of 8.1 percent. The Sarvesh bond is rated A by Fitch and the average credit spread on A-rated debt is currently 1.0 percent. What is the price of the bond today? Which of the following statements is true? Common stock dividends are always less than preferred stock dividends. Common stock dividends are a fixed percentage of par value. Common stockholders have less influence than preferred stockholders at a firm's annual meeting. If a firm must liquidate, available cash goes to preferred stockholders before anything is paid to common stockholders. Common stock maturities generally are shorter than preferred stock maturities