Question
Having the following data:- A $100.0 par value preferred stock with 10.0% dividend & a 15.0% required return. A $1.0 par value common stock with
Having the following data:-
A $100.0 par value preferred stock with 10.0% dividend & a 15.0% required return.
A $1.0 par value common stock with $3.0 EPS; a 5.0% risk-free rate; a 6.0% Market Risk-Premium; a 40.0% pay-out ratio; a 5.0% constant growth in EPS & dividend per share (g); Beta is 1.40.
A 20 years 6.0% coupon debenture (Non-guaranteed corporate bond) with a Yield-to-maturity (YTM) of 5.0%.
Answer the following questions:-
1 - The preferred stock's price is ???
2 - The common stock's price is ???
3 - The required return on the market is ????
4 - The debenture's price is ????
5 - The debenture's discount / premium is???
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