Question
Please answer all please! 1)Farley Inc. has perpetual preferred stock outstanding that sells for $33 a share and pays a dividend of $2.75 at the
Please answer all please!
1)Farley Inc. has perpetual preferred stock outstanding that sells for $33 a share and pays a dividend of $2.75 at the end of each year. What is the required rate of return?
2)Toch Industries can issue perpetual preferred stock at a price of $56.00 a share. The stock would pay a constant annual dividend of $6.00 a share. What is the companys cost of preferred stock, rp?
3)What is the value of a 15-year bond, 10% annual coupon bond, if rd= 5%?
4)Madsen Motorss bonds have 23 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8%; and the yield to maturity is 11%. What is the bonds current market price?
5)A friend of yours just invested in an outstanding bond with a 6% annual coupon and a remaining maturity of 10 years. The bond has a par value of $1,000 and the market interest rate is currently 7%. How much did your friend pay for the bond?
6)Suppose (nominal) rate is rd=5% with semiannual compounding, the value of a 15-year, 10% semiannual coupon bond that pays $40 interest every 6 months, Find the value of bond?
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