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Please show the work for all problems. Thank you so much. See Tutorwork04132nd.docx P5-1. Argaiv Towers has outstanding an issue of preferred stock with a

Please show the work for all problems.

Thank you so much.

See Tutorwork04132nd.docx

image text in transcribed P5-1. Argaiv Towers has outstanding an issue of preferred stock with a par value of $100. It pays an annual dividend equal to 8% of par value. If the required return on Agaiv preferred stock is 6%, and if Argaiv pays its next dividend in on year, What is the market price of the preferred stock today? P5-2. Artivel Mining Corp's preferred stock pays a dividend of $5 each year. If the stock sells for $40 and the next dividend will be paid in one year, What return do investors required on Artivel preferred stock? P5-3. Silaic Tools has issued preferred stock that offers investor a 10% annual return. The stock currently sells for $80, and the next dividend will be paid in one year. How much is the dividend? P5-18. The firm's weighted average cost of capital is 12%. It has $1,400,000 of debt at market value and $500,000 of preferred stock at its assumed market value. The estimated free cash flows over the next five years, 2013 through 2017, follow. Beyond 2017 to infinity, the firm expects its free cash flow to grow by 4% annually. Year Free Cash Flow 2013 $250,000 2014 $290,000 2015 $320,000 2016 $360,000 2017 $400,000 a) Estimate the value of Roben Corporation's entire company by using the free cash flow approach? b) Use your finding in par (a), along with the data provide above, to find Roban Corporation's comm stock value? c) If the firm plans to issue 220,000 shares of commons stock, What is its estimated value per share? p 6-1. You purchase 1,000 shares of Spears Ginders, Inc stock for $45 per share. A year later, the stock pays a dividend of $1.25 per share, and it sells for $49. a) Calculate your total dollar return b) Calculate your total percentage return c) Do the answers to parts (a) and (b) depend on whether you sell the stock after one year or continue to hold it? P6-4. Nano-Motors Corp. has stock outstanding which sells for $10 per share. MacroMotors, Inc. share cost $50 each. Neither stock pays dividends at present. a) An investor buys 100 shares of Nano-Motor. A year later, the stock sells for $15. Calculate the total return in dollar terms and in percentage terms. b) Another investor buys 100 shares of Macro-Motors stock. A year later, the stock has risen to $56. Calculate the total return in dollar terms and in percentage terms. c) Why is it difficult to say which investor had a better year

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