Preferred shares of A Corp. currently sell for $$16$ per share and offer a dividend of $$1$ per share, which is not expected to change. If Rachel is looking for a $8\%$ return on investment are A Corp. shares a good choice? Briefly explain.

Preferred shares of B Corp just paid a dividend of $$1\mathrm{.}50$ per share and the dividend is expected to grow by $5\%$ every year. If the market discount rate on these preferred shares is $12\%,$ what should be the price of a preferred share of B Corp. today?

Common shares of C Corp. just paid a dividend of $$0\mathrm{.}80$ per share. C Corp. pays out $25\%$ of its profits to shareholders and currently has a $15\%$ return on equity. If the market discount rate is $12\%,$ what is the price of a common share of C Corp. today?

Suppose someone buys D Corp for $$3$ per share right now. In one year the stock pays out a dividend of $$0\mathrm{.}20$ per share and can be sold for $$3\mathrm{.}30$ per share. What is the annual market discount rate implied these facts?