Fenway Athletic Club plans to offer its members preferred stock with a par value of $100 and an annual dividend rate of 7%.

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

a. Theo wants a return of 8%.

b. Jonathan wants a return of 12%.

c. Josh wants a return of 16%.

d. Terry wants a return of 18%.

a. If Theo wants a return of 8%, what price should he be willing to pay?

$_______ (Round to the nearest cent.)

b. If Jonathan....

c. If Josh.....

d. If Terry.....