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MULTIPLE PARTS!! Please look at each or I will review as not complete. Really struggling on these and want to make sure my math is
MULTIPLE PARTS!! Please look at each or I will review as not complete. Really struggling on these and want to make sure my math is correct. Thank you in advance.
The Levin Corporation has preferred stock with a par value of $100. They pay an annual fixed dividend of $8 to their preferred stockholders. They have just paid a dividend and their next dividend will be paid one year from today. If their preferred stockholders require a return of 11%, at what price should their preferred stock currently sell? Choose the range that includes the correct answer. Round only your final answer to two decimal places. Less than $70 Greater than or equal to $70, but less than $71 Greater than or equal to $71, but less than $72 Greater than or equal to $72, but less than $73 Greater than or equal to $73 Duster Co.just paid a dividend of $2.00. Dividends will grow by 4% for the next three years. After that dividends will grow by 3% into perpetuity. Duster's stock has a required rate of return of 14 percent. What should be the price per share of Duster stock four years from today (immediately after the year 4 dividend is paid)? Select the range that includes the correct solution. Round only your final answer to two decimal places. Less than $20 Greater than or equal to $20, but less than $21 Greater than or equal to $21, but less than $22 Greater than or equal to $22, but less than $23 Greater than or equal to $23 You are considering buying stock for Finance Inc. If you buy the stock, you estimate that you will get a dividend of $5 one year from today. Two years from today you will get a dividend of $6. Immediately after receiving the $6 dividend, you will then sell the stock for $70. If your required rate of return is 9%, how much should you pay for the stock today given your estimates? Round only your final answer to two decimal places. $68.55 $72.37 $64.22 $66.89 None of the above are correct. You own a bond that has a face value of $1,000 and 20 years until it matures. Its current price is $1,050. The bond's coupon rate is 5%. Which of the following statements is/are true? The bond's yield to maturity is less than 5%. The bond's yield to maturity is 5%. The bond's yield to maturity is greater than 5%. More than one of the above could be trueStep by Step Solution
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