Fenway Athletic Club plans to offer its members preferred stock with a par value of $200 and an annual dividend rate of 6%.

What price should these members be willing to pay for the returns they want?

a.Theo wants a return of 10%.

b.Jonathan wants a return of 11%.

c.Josh wants a return of 16%.

d.Terry wants a return of 19%

1. If Theo wants a return of 10%, what price should he be willing to pay?

2. If Jonathan wants a return of 11%, what price should he be willing to pay?

3. If Josh wants a return of 16%, what price should he be willing to pay?

4. If Terry wants a return of 19%, what price should he be willing to pay?