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Please, show the formula of the answers 2. Calculate the price of the following stocks, if the required rate of return is 10%. 1. Preferred
Please, show the formula of the answers
2. Calculate the price of the following stocks, if the required rate of return is 10%. 1. Preferred stock that pays 20 euro dividend every year for next 20 years II. Preferred stock that pays 20 euro dividend every year with the constant growth rate of 4% for next 20 years. III. Common stock that pays 20 euro constant dividend every year IV. Common stock that pays 20 euro dividend every year with the constant growth rate of 4%. V. Common stock that pays 20 euro dividend every year for next three years with constant growth of 8% and then it grows 5% thereafter. VI. A convertible preferred stock that pays 10 euro dividend every year for next 10 years and it converts into a common stock with the same dividend payout every year thereafter. VII. A convertible preferred stock that pays 10 euro dividend every year for next 10 years with the constant growth rate of 4% and it converts into a common stock with the same dividend payout scheme every year thereafter. VIII. A convertible preferred stock that pays 10 euro every year for next 10 years with the constant dividend and it converts into a common stock that pays 5 euro dividend over the coming year and that grows by 5% every year thereafter
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