I need help, I'm providing information sheet with some examples and the last picture willl be the assignment that i need help on using an excel sheet

Information Sheet Valuing Preferred Stocks 1. Xerox preferred stock pays an 8.25% dividend on a $50 par value. Suppose our required rate of retum on Xerox preferred stock is 9.5%. What is the value of this preferred stock to you as the investor? 2. National Pickle Company preferred stock pays a dividend of 2.6% of its $50 par value. If investors' required rate of return on this stock is 14%, what is the value per share? 3. The preferred stock of Armlo pays an 11% dividend of its $25 par value. What is the value of the stock if your required retum is 9%? Expected Rate of Return of Preferred Stockholders 4. If we know the current market price for a preferred stock is $40, and the dividend is $4.125 per share, what is the expected return? 5. Soledad Company preferred stock has a market price of $20. If it has a yearly dividend of $1.50 per share, what is your expected rate of retum if you purchase the stock at its market price? Preferred Stock - Investment Decisions 6. Pioneer preferred stock pays a $3.60 annual dividend. a. The stock is selling for $33 per share in the market, what is the expected rate of retum on the stock? b. If an investor's required rate of retum is 10%, what is the value of the stock for that investor? c. Should the investor acquire the stock? Why? 7. Hershey's preferred stock pays an annual dividend of $3.80. The stock is selling at $65 on the market, what is the expected rate of retum on the stock? b. If an investor's required rate of retum is 7%, what is the value of the stock to that investor? c. Does this stock seem to be a desirable investment? Why? Valuing Common Stocks 8. XYZ stock recently paid a $5.00 dividend. The dividend is expected to grow at 10% per year indefinitely. What would we be willing to pay if our required retum on XYZ stock is 15%? 9. Crosby Corporation common stock paid $2.32 in dividends last year and is expected to grow indefinitely at an annual 7% rate. What is the value of the stock if you require an 11% retum? 10. Lojack Airways common stock just paid a dividend of $2.50 Dividends are expected to grow at a rate of 8% in definitely If investors require a rate of retum on the stock of 15%, what is the value of Lojack's common stock today? Expected Rate of Return of Common Stockholders 11. The common stock of Zaldi Co. is selling for $32 84 per share. The stock recently paid dividends of $2.94 per share and has a projected constant growth rate of 9.5%. If you purchase the stock at the market price, what is the expected rate of return? 12. We know a common stock just paid a $3.00 dividend, has a price of $27 and an expected growth rate of 5%. What is the stocks expected rate of return? Common Stock - Investment Decisions er of NCP said $1 32 per share in dividends last year Dividends are expected Qa Calib BI VSA 1 B D E F G H 3 K 1. Xerox preferred stock pays an 8.25% dividend on a $50 par value. Suppose our required rate of return on Xerox preferred stock is 9.5%. What is the value of this preferred stock M N to you as the investor? Par value 50 Dividend rate 0.0825 2 3 4 D 5 r 4.125 - Par value Dividend rate 500.0825 -4.125 0.095 -4.125/ $43.42 -D/ no Ve = 6 7 8 2. National Pickle Company preferred stock pays a dividend of 2.6% of its $50 par value. If investors' required rate of return on this stock is 10%, what is the value per share Par value Dividend rate 1:30 0.140 Vps- $9.29 0.026 9 10 11 12 13 14 D 15 3. The preferred stock of Armlo pays an 11% dividend of its $25 par value. What is the value of the stock if your required returns 9X7 16 Par value 25 17 Dividend rate 0.11 18 D 2.75 19 0.090 Vos $30.56 Vung PS Expected Rate of Rotun PS investment Decisions PS Vaig CS Expected Rate of Rotum CS ANNO extension://bpmcpldpdmapchkicefigmal/views/app html Demo Exercise 6.xlsx?globalNavigation=false.xlsx File Edit Insert Format Help QQ BI USA . 14. If we know the current market price for a preferred stock is $40, and the dividend is $4.125 per share, what is the expected return? A B E H 3 K Calibri D 1 G 1 2 3 4. if we know the current market price for a preferred stock is 540. and the dividend is $4.125 per share, what is the expected return? Par value Dividend rate 4.12 No need to calculate Pps 40.00 r bar 10.31% - D/Pps 4.125/40 4 D 5 6 7 8 5. Soledad Company preferred stock has a market price of $20. if it has a yearly dividend of $1.50 per share, what is your expected rate of return you purchase the stod at its market price? Par value Dividend rate D 1.50 Pps 20.00 7.50% bar- 9 10 11 12 13 14 15 16 17 18 19 Valuus Expected Rate of Return PS Investment Decisions PS Viluing CS Expected Rate of Ritums Help QQ Calibri 11 - BIUS A. EH IIR E- A B D E F 1 6. Pioneer preferred stock pays a $3.60 annual dividend. G H K 2 3 a. The stock is selling for $33 per share in the market, what is the expected rate of return on the stock? 4 Par value 5 Dividend rate 6 D 3.60 7 Pps 33.00 8 r bar- 10.91% 9 10 b. If an investor's required rate of return is 10%, what is the value of the stock for that investor? 11 Par value 12 Dividend rate 13 D 3.60 14 0.100 15 Vps $36.00 16 17 c. Should the investor acquire the stock? Why? 18 Yes. Because the market price ($33) is lower than the budget ($36) (.e. the price that the invester is willing to pay). 19 20 Z. Hershey's preferred stock pays an annual dividend of $3.80. 22 a. The stock is selling at $65 on the market, what is the expected rate of return on the stock? Par value Dividend rate 25 3.80 valsing Ps Investment Decimo CS Expected Rate of Return PS Investment Decisions PS Villing cs Expected Rate of Return CS D x Demo Exercise 6 - Fal 2020 TX W Demo Exercise info Shox X Demo Erowe Office Editing for Docs, Sheets & Slides chrome extension/spricplepdenafigpchicefoktal/viewt/app.htm Demo Exercise 6.xlsx?globalNavigation=false.xlsx File Edit Insert Format Help Q BLUSA Calibri 1 2. B D E F G H 8. XYZ stock recently paid a $5.00 dividend. The dividend is expected to row at 10% per year indefinitely. What would we be willing to pay it our required return on XYZ stock is K N 15%? DO 5.00 Dividend paid 8 0.101 annual growth D1 5.50-DO (1) -5.00 (1 +0.10) 0.150 Vos -5.50 / (0.15- 110.00 - D/ ( - 2 4 5 6 ni 7 8. 9 10 11 12 13 9. Crosby Corporation common stock paid $2.32 in dividends last year and is expected to grow indefinitely at an annual 7% rate. What is the value of the stock if you require an 11% return? DO 8 0.07 01 2.48 r 0.110 Ves - $62.06 15 16 10. Lojack Airways common stock just paid a dividend of $250. Dividends are expected to grow at a rate of 8% indefinitely. It investors require a rate of return on the stockol 15%, what is the value of Lojack's common stock today? 00 2250 15 0.08 2.70 0.150 17 16 19 03 Investment Docs CS PS Expected Rate of Rotun PS Investment Decisions Volunds Expected Rate of Rouncs o PL K 5 Demo Brose 5-Fal 20201 x W Demo Bretto Show Office Editing for Docs, sheets & Slides chrome extension bpmcpidpdmapphicefoto/views/app,hind X Omsorg X Demo Exercise 6.xlsx?globalNavigation=false.xlsx File Edit Insert Format Help Calibri #YUSA - - f 11. The common stock of Zaldi Co is selling for $32 84 per share. The stock recently paid dividends of S2 94 per share and has a projected constant growth rate of 95. If you B D E G H 3 11. The common stock of Zaldi Co. is selling for $32.84 per share. The stock recently paid dividends of $2.94 per share and has a projected constant growth rate of . If you M 1 N purchase the stock at the market price, what is the expected rate of return? 2 DO 2.94 Dividend paid 3 0.095 annual growth 4 01 3.221-DO (1) -2.94 (1+0.095) Pps 32.840 6 r bar 19.30% - (01/Pps) + - (3.22/3284) 0.095 7 12. We know a common stock just paid a $3.00 dividend, has a price of $27 and an expected growth rate of 5%. What is the stock's expected rate of return? 9 100 10 B 0.050 101 3.15 11 12 Pps 27.000 13 bar 16.67% 14 15 16 17 18 19 20 V PS Excluded Rum PS Irmant Deco PSV Expected Race of Return CS Wonecos 350 o DELL Calin BIUS A. 13. The common stock of NCP paid $1 32 per share in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years B C D E 1 F 13. The common stock of NCP paid $1.32 per share in dividends last year. Dividends are expected to grow at an annual rate for an indefinite G H J M N O P Q 3 a. If NCP's current market price is $23.50 per share, what is the stock's expected rate of return? 4 DO 1.32 5 8 0.080 5 D1 1.43 17 Pps 23.500 bar- 14.07% 9 10 b. If your required rate of return is 10.5, what is the value of the stock for you? 11 DO 12 12 16 0.08 13 01 1.43 14 0.105 15 VES $57.02 16 17 c. Should the investor acquire the stock? Why? 18 Yes. Because the market price ($23.50) is lower than the budget (657.02) (le the price that the investor is willing to pay). 19 2014. Susan Crane Co. Just paid a dividend of $2.25 on its common stock. The company's dividends are expected to grow at a constant rate of 2.0 22 a. You observe a market price of $21.00 for the stock. What is the expected rate of return of the stock 23 24 0.0251 25 11 Pos 21.00 Vilung CS Expected Rate of Patum PS Investment Scisions PS Expected Roof Renuncs lnvestment Descom 2.31 File Edit Insert Format Help aise.xlsx Calibri 11 - BIUSA. - B 17 E H N O 19 D LUI HIVI U BUT WHY F G 3 M Yes. Because the market price ($23.50) is lower than the budget ($57.02) (ie the price that the invester is willing to pay). 2014. Susan's Crane Co. just paid a dividend of $2.25 on its common stock. The company's dividends are expected to grow at a constant rate of 2.8% 22 a. You observe a market price of $21.00 for the stock. What is the expected rate of return of the stock? 23 DO 2.25 0.025 2.31 26 Pps 21.0001 r bar 13.48% 24 25 16 D1 28 bif the required rate of return on this stock is 14.5%, compute the current value per share of Susan's stock. DO 2125 IS 0.03 2.31 Di 0.145 $19.22 Ves - 30 31 32 33 34 35 36 37 38 39 40 Should you purchase this stock? Why? No. Because the market price (521) is higher than the budget ($19.22) i.e. the price that the invester is willing to pay). Vilung PS Expected Rate of Return PS Investment Decisions PS Valuing CS Expected Roto of Return CS Investment Decisions CS O DELL being provided in the Demo Exercise. Submit the Homework spreadsheet using this filename "RHIM4322- Last_Name-Homework 6" 1. What is the value of a preferred stock when the dividend rate is 14% on a $100 par value? The appropriate required rate of return for a stock of this risk level is 12%. 2 Positive Tronics Industries preferred stock pays a dividend of $4.00 per share. It presently sells for $85 per share. What do investors expect as a rate of return on this stock? 3. You own Somner Resources preferred stock, which pays annual dividends of $3.40 per share. a. If Sonmer's preferred stock currently sells for S40 per share, what is your expected rate of return? b. If you require an 8% return, what is the value of the preferred stock to you? c. Should you sell or buy more Sonmer Resource preferred stock? Why? 4 Header Motor, Inc., common stock paid a $3.50 dividend last year. At a constant growth rate of 5%, what is the value of the common stock if the investors require a 20% rate of return? 5. Creamy Crisp common stock is currently selling for 575.00. It just paid a dividend of $3.65 and dividends are expected to grow at a rate of 6% indefinitely. What is the expected rate of return on Creamy's stock? 6. Made-It, Inc., common stock currently sells for $22.50 per share. The company's executives paid a 2.00 dividend and anticipate a constant growth rate of 10%. a. What is your expected return if you buy the common stock at the current market price of $22.50 per share? b. If you require a 17% return, what is the value of the common stock to you? c. Should you purchase the stock? Why? 1 Information Sheet Valuing Preferred Stocks 1. Xerox preferred stock pays an 8.25% dividend on a $50 par value. Suppose our required rate of retum on Xerox preferred stock is 9.5%. What is the value of this preferred stock to you as the investor? 2. National Pickle Company preferred stock pays a dividend of 2.6% of its $50 par value. If investors' required rate of return on this stock is 14%, what is the value per share? 3. The preferred stock of Armlo pays an 11% dividend of its $25 par value. What is the value of the stock if your required retum is 9%? Expected Rate of Return of Preferred Stockholders 4. If we know the current market price for a preferred stock is $40, and the dividend is $4.125 per share, what is the expected return? 5. Soledad Company preferred stock has a market price of $20. If it has a yearly dividend of $1.50 per share, what is your expected rate of retum if you purchase the stock at its market price? Preferred Stock - Investment Decisions 6. Pioneer preferred stock pays a $3.60 annual dividend. a. The stock is selling for $33 per share in the market, what is the expected rate of retum on the stock? b. If an investor's required rate of retum is 10%, what is the value of the stock for that investor? c. Should the investor acquire the stock? Why? 7. Hershey's preferred stock pays an annual dividend of $3.80. The stock is selling at $65 on the market, what is the expected rate of retum on the stock? b. If an investor's required rate of retum is 7%, what is the value of the stock to that investor? c. Does this stock seem to be a desirable investment? Why? Valuing Common Stocks 8. XYZ stock recently paid a $5.00 dividend. The dividend is expected to grow at 10% per year indefinitely. What would we be willing to pay if our required retum on XYZ stock is 15%? 9. Crosby Corporation common stock paid $2.32 in dividends last year and is expected to grow indefinitely at an annual 7% rate. What is the value of the stock if you require an 11% retum? 10. Lojack Airways common stock just paid a dividend of $2.50 Dividends are expected to grow at a rate of 8% in definitely If investors require a rate of retum on the stock of 15%, what is the value of Lojack's common stock today? Expected Rate of Return of Common Stockholders 11. The common stock of Zaldi Co. is selling for $32 84 per share. The stock recently paid dividends of $2.94 per share and has a projected constant growth rate of 9.5%. If you purchase the stock at the market price, what is the expected rate of return? 12. We know a common stock just paid a $3.00 dividend, has a price of $27 and an expected growth rate of 5%. What is the stocks expected rate of return? Common Stock - Investment Decisions er of NCP said $1 32 per share in dividends last year Dividends are expected Qa Calib BI VSA 1 B D E F G H 3 K 1. Xerox preferred stock pays an 8.25% dividend on a $50 par value. Suppose our required rate of return on Xerox preferred stock is 9.5%. What is the value of this preferred stock M N to you as the investor? Par value 50 Dividend rate 0.0825 2 3 4 D 5 r 4.125 - Par value Dividend rate 500.0825 -4.125 0.095 -4.125/ $43.42 -D/ no Ve = 6 7 8 2. National Pickle Company preferred stock pays a dividend of 2.6% of its $50 par value. If investors' required rate of return on this stock is 10%, what is the value per share Par value Dividend rate 1:30 0.140 Vps- $9.29 0.026 9 10 11 12 13 14 D 15 3. The preferred stock of Armlo pays an 11% dividend of its $25 par value. What is the value of the stock if your required returns 9X7 16 Par value 25 17 Dividend rate 0.11 18 D 2.75 19 0.090 Vos $30.56 Vung PS Expected Rate of Rotun PS investment Decisions PS Vaig CS Expected Rate of Rotum CS ANNO extension://bpmcpldpdmapchkicefigmal/views/app html Demo Exercise 6.xlsx?globalNavigation=false.xlsx File Edit Insert Format Help QQ BI USA . 14. If we know the current market price for a preferred stock is $40, and the dividend is $4.125 per share, what is the expected return? A B E H 3 K Calibri D 1 G 1 2 3 4. if we know the current market price for a preferred stock is 540. and the dividend is $4.125 per share, what is the expected return? Par value Dividend rate 4.12 No need to calculate Pps 40.00 r bar 10.31% - D/Pps 4.125/40 4 D 5 6 7 8 5. Soledad Company preferred stock has a market price of $20. if it has a yearly dividend of $1.50 per share, what is your expected rate of return you purchase the stod at its market price? Par value Dividend rate D 1.50 Pps 20.00 7.50% bar- 9 10 11 12 13 14 15 16 17 18 19 Valuus Expected Rate of Return PS Investment Decisions PS Viluing CS Expected Rate of Ritums Help QQ Calibri 11 - BIUS A. EH IIR E- A B D E F 1 6. Pioneer preferred stock pays a $3.60 annual dividend. G H K 2 3 a. The stock is selling for $33 per share in the market, what is the expected rate of return on the stock? 4 Par value 5 Dividend rate 6 D 3.60 7 Pps 33.00 8 r bar- 10.91% 9 10 b. If an investor's required rate of return is 10%, what is the value of the stock for that investor? 11 Par value 12 Dividend rate 13 D 3.60 14 0.100 15 Vps $36.00 16 17 c. Should the investor acquire the stock? Why? 18 Yes. Because the market price ($33) is lower than the budget ($36) (.e. the price that the invester is willing to pay). 19 20 Z. Hershey's preferred stock pays an annual dividend of $3.80. 22 a. The stock is selling at $65 on the market, what is the expected rate of return on the stock? Par value Dividend rate 25 3.80 valsing Ps Investment Decimo CS Expected Rate of Return PS Investment Decisions PS Villing cs Expected Rate of Return CS D x Demo Exercise 6 - Fal 2020 TX W Demo Exercise info Shox X Demo Erowe Office Editing for Docs, Sheets & Slides chrome extension/spricplepdenafigpchicefoktal/viewt/app.htm Demo Exercise 6.xlsx?globalNavigation=false.xlsx File Edit Insert Format Help Q BLUSA Calibri 1 2. B D E F G H 8. XYZ stock recently paid a $5.00 dividend. The dividend is expected to row at 10% per year indefinitely. What would we be willing to pay it our required return on XYZ stock is K N 15%? DO 5.00 Dividend paid 8 0.101 annual growth D1 5.50-DO (1) -5.00 (1 +0.10) 0.150 Vos -5.50 / (0.15- 110.00 - D/ ( - 2 4 5 6 ni 7 8. 9 10 11 12 13 9. Crosby Corporation common stock paid $2.32 in dividends last year and is expected to grow indefinitely at an annual 7% rate. What is the value of the stock if you require an 11% return? DO 8 0.07 01 2.48 r 0.110 Ves - $62.06 15 16 10. Lojack Airways common stock just paid a dividend of $250. Dividends are expected to grow at a rate of 8% indefinitely. It investors require a rate of return on the stockol 15%, what is the value of Lojack's common stock today? 00 2250 15 0.08 2.70 0.150 17 16 19 03 Investment Docs CS PS Expected Rate of Rotun PS Investment Decisions Volunds Expected Rate of Rouncs o PL K 5 Demo Brose 5-Fal 20201 x W Demo Bretto Show Office Editing for Docs, sheets & Slides chrome extension bpmcpidpdmapphicefoto/views/app,hind X Omsorg X Demo Exercise 6.xlsx?globalNavigation=false.xlsx File Edit Insert Format Help Calibri #YUSA - - f 11. The common stock of Zaldi Co is selling for $32 84 per share. The stock recently paid dividends of S2 94 per share and has a projected constant growth rate of 95. If you B D E G H 3 11. The common stock of Zaldi Co. is selling for $32.84 per share. The stock recently paid dividends of $2.94 per share and has a projected constant growth rate of . If you M 1 N purchase the stock at the market price, what is the expected rate of return? 2 DO 2.94 Dividend paid 3 0.095 annual growth 4 01 3.221-DO (1) -2.94 (1+0.095) Pps 32.840 6 r bar 19.30% - (01/Pps) + - (3.22/3284) 0.095 7 12. We know a common stock just paid a $3.00 dividend, has a price of $27 and an expected growth rate of 5%. What is the stock's expected rate of return? 9 100 10 B 0.050 101 3.15 11 12 Pps 27.000 13 bar 16.67% 14 15 16 17 18 19 20 V PS Excluded Rum PS Irmant Deco PSV Expected Race of Return CS Wonecos 350 o DELL Calin BIUS A. 13. The common stock of NCP paid $1 32 per share in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years B C D E 1 F 13. The common stock of NCP paid $1.32 per share in dividends last year. Dividends are expected to grow at an annual rate for an indefinite G H J M N O P Q 3 a. If NCP's current market price is $23.50 per share, what is the stock's expected rate of return? 4 DO 1.32 5 8 0.080 5 D1 1.43 17 Pps 23.500 bar- 14.07% 9 10 b. If your required rate of return is 10.5, what is the value of the stock for you? 11 DO 12 12 16 0.08 13 01 1.43 14 0.105 15 VES $57.02 16 17 c. Should the investor acquire the stock? Why? 18 Yes. Because the market price ($23.50) is lower than the budget (657.02) (le the price that the investor is willing to pay). 19 2014. Susan Crane Co. Just paid a dividend of $2.25 on its common stock. The company's dividends are expected to grow at a constant rate of 2.0 22 a. You observe a market price of $21.00 for the stock. What is the expected rate of return of the stock 23 24 0.0251 25 11 Pos 21.00 Vilung CS Expected Rate of Patum PS Investment Scisions PS Expected Roof Renuncs lnvestment Descom 2.31 File Edit Insert Format Help aise.xlsx Calibri 11 - BIUSA. - B 17 E H N O 19 D LUI HIVI U BUT WHY F G 3 M Yes. Because the market price ($23.50) is lower than the budget ($57.02) (ie the price that the invester is willing to pay). 2014. Susan's Crane Co. just paid a dividend of $2.25 on its common stock. The company's dividends are expected to grow at a constant rate of 2.8% 22 a. You observe a market price of $21.00 for the stock. What is the expected rate of return of the stock? 23 DO 2.25 0.025 2.31 26 Pps 21.0001 r bar 13.48% 24 25 16 D1 28 bif the required rate of return on this stock is 14.5%, compute the current value per share of Susan's stock. DO 2125 IS 0.03 2.31 Di 0.145 $19.22 Ves - 30 31 32 33 34 35 36 37 38 39 40 Should you purchase this stock? Why? No. Because the market price (521) is higher than the budget ($19.22) i.e. the price that the invester is willing to pay). Vilung PS Expected Rate of Return PS Investment Decisions PS Valuing CS Expected Roto of Return CS Investment Decisions CS O DELL being provided in the Demo Exercise. Submit the Homework spreadsheet using this filename "RHIM4322- Last_Name-Homework 6" 1. What is the value of a preferred stock when the dividend rate is 14% on a $100 par value? The appropriate required rate of return for a stock of this risk level is 12%. 2 Positive Tronics Industries preferred stock pays a dividend of $4.00 per share. It presently sells for $85 per share. What do investors expect as a rate of return on this stock? 3. You own Somner Resources preferred stock, which pays annual dividends of $3.40 per share. a. If Sonmer's preferred stock currently sells for S40 per share, what is your expected rate of return? b. If you require an 8% return, what is the value of the preferred stock to you? c. Should you sell or buy more Sonmer Resource preferred stock? Why? 4 Header Motor, Inc., common stock paid a $3.50 dividend last year. At a constant growth rate of 5%, what is the value of the common stock if the investors require a 20% rate of return? 5. Creamy Crisp common stock is currently selling for 575.00. It just paid a dividend of $3.65 and dividends are expected to grow at a rate of 6% indefinitely. What is the expected rate of return on Creamy's stock? 6. Made-It, Inc., common stock currently sells for $22.50 per share. The company's executives paid a 2.00 dividend and anticipate a constant growth rate of 10%. a. What is your expected return if you buy the common stock at the current market price of $22.50 per share? b. If you require a 17% return, what is the value of the common stock to you? c. Should you purchase the stock? Why? 1