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number 5 please 3. Space Tours, Inc. has the following securities issued and outstanding. 2.0% Preferred stock, par value $40 per share. Common stock, which
number 5 please
3. Space Tours, Inc. has the following securities issued and outstanding. 2.0% Preferred stock, par value $40 per share. Common stock, which has just paid a dividend of $2.25 per share that is expected to grow at a stable annual rate of 3.5% for the foreseeable future. If the current discount rate the market is using for Space Tours, Inc. Preferred stock is 2.2%, then the current price of the Preferred stock is $ .02=0.8 08/.022 (36.36) 4. If the weighted average cost of capital Space Tours is 8.5%, the the current intrinsic price of the company's Common stock is $ 2.32875 = 46.575 085 .035 2.25 (1+.035) = 2.32875 5. Next year, Fusion Energy Corp. will pay a $1.80 per share dividend to Common stock; the following year, it will pay a $1.40 per share dividend; in year three, it will pay a $1.50 per share dividend; and in year four, it will pay a $1.75 per share dividend, which will then grow at an annual rate of 2.5% thereafter for the foreseeable future. If Fusion Energy's weighted average cost of capital is 7.5%, then the current intrinsic price per share of the company's Common stock is $ Step by Step Solution
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