If common stock has a constant dividend, year over year, True or False the current price (i.e. resent value) for a common stock can be determined based on a general valuation model used for dividend. True, may use the preferred stock valuation method False, may NOT use the preferred stock valuation method A bond with a $1,000 par value has seven years remaining until maturity. The bond pays annual interest payments based on a coupon of 8.00 percent. The yield to maturity for this bond, based on the trading prices for other similar bonds, is 9.00 percent. What is this bond's current trading price (i.e. what is the bond's present value)? $1,000.00 $1, 051, 54 $949, 64 $1, 065.20 A preferred stock with a par value of $100 bear>> a dividend yield (i.e. a stared rate of return) of 11.00 percent. The trading prices for other similar preferred stocks re fleet a required rate of return of 10.00 percent for this security. This stock should trade at a value greater than its par value of $100.00 less than its par value of $100.00 equal to its par value of $100.00 that cannot be determined based on the given information. Preferred stock dividend is $11, and die required rate of return is 10%, what are the value/trading price of the preferred stock? is $90.91 is $110.00 is $100.00 cannot be determined based on the given information. A common stock is expected to pay a dividend of $5.00 at the end of next year. The dividend is expected to grow thereafter at a rate of 5.00 percent annually. The required rate of return for this security is 20.00 percent. We would expect this common stock to trade at a current price of $50.00 $25.00 $100.00 $33.33 Which of the following forms of financing has a tax advantage over the others? Trade credit Debit Preferred Stock Common Stock