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MC09. 5&6 Question 5 1 pts Ajax Company has issued perpetual preferred stock with a par of $100 and a dividend of 5.5 percent. If
MC09. 5&6
Question 5 1 pts Ajax Company has issued perpetual preferred stock with a par of $100 and a dividend of 5.5 percent. If the required rate of return is 7.75 percent, what is the preferred stock's current market price? (Round off to the two decimal places.) Based on the picture above, what should be the stock price in B15? $12.90 $70.97 none of the answers is correct $53.27 $62.14 Question 6 1 pts A company's earnings and dividends are growing at a constant rate of 8 percent. Last week it paid a dividend of $3.00. If the required rate of return is 15 percent, what is the price of the stock three years from now? (Do not round intermediate calculations. Round final answer to two decimal places.) Based on the picture above, what should be the stock price in year 3(P3) in E47? $46.29 $42.83 $51.02 none of the answers is correct $58.31Step by Step Solution
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