CCE Inc. has preferred stocks outstanding. The preferred dividend per share is $2.5 and the required rate of return is .20. What is the expected price per share?

Select one:

a. $14.13

b. $13.77

c. $13.11

d. $12.5

Five years ago, you bought a EEP preferred stock at $20. You have received a dividend of $4 per year. The current price of the preferred stock is $25. If you sell the stock now, what is your realized rate of return?

Select one:

a. 21.08%

b. 17.66%

c. 22.27%

d. 24.2%

e. 23.16%

Based on the following information concerning Ford preferred stock,

Preferred dividend per share: $9

Beta: 0.85

Risk free rate: 5%

Market risk premium: 6%

Calculate the expected price in 4 years. You expect the risk free rate to decrease to 3% and the market risk premium to increase to 10% in 4 years.

Select one:

a. $76.43

b. $78.26

c. $80.65

d. $74.22