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A firm issues preferred stock with a dividend of $3.03. If the appropriate discount rate is 6.86% what is the value of the preferred stock?

  1. A firm issues preferred stock with a dividend of $3.03. If the appropriate discount rate is 6.86% what is the value of the preferred stock?
  2. The market price of a share of preferred stock is $21.92 and the dividend is $2.26. What discount rate did the market use to value the stock?
  3. The market price of a share of preferred stock is $49.87. The market uses a discount rate of 6.89%. What is the dividend?
  4. Caspian Sea is considering raising $46.00 million by issuing preferred stock. They believe the market will use a discount rate of 8.67% to value the preferred stock which will pay a dividend of $2.08. How many shares will they need to issue?
  5. A firm will pay a dividend of $1.75 next year. The dividend is expected to grow at a constant rate of 4.35% forever and the required rate of return is 14.96%. What is the value of the stock?
  6. Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 71.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 71.0 when he fully retires, he will wants to have $2,777,995.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 5.00% interest rate.
  7. A bank offers 4.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?
  8. A firm just paid a dividend of $1.69. The dividend is expected to grow at a constant rate of 4.22% forever and the required rate of return is 10.35%. What is the value of the stock?
  9. The market price of a stock is $37.76 and it is expected to pay a $4.41 dividend next year. The dividend is expected to grow at 2.71% forever. What is the required rate of return for the stock?
  10. The market price of a stock is $52.60 and it just paid $5.58 dividend. The dividend is expected to grow at 2.83% forever. What is the required rate of return for the stock?
  11. The market price of a stock is $22.97 and it just paid a dividend of $1.55. The required rate of return is 11.75%. What is the expected growth rate of the dividend?
  12. The market price of a stock is $23.21 and it is expected to pay a dividend of $1.07 next year. The required rate of return is 11.37%. What is the expected growth rate of the dividend?

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