Previous Page Next Page Page 8 of 18 3 ABC Corp pays an annual dividend of $5.0 on its preferred stock and the required return on the preferred stock is 10% ABC Corp just paid a dividend of $3.00 to its common stockholders and dividends are expected to grow at a constant rate of 10.00% per year and the required return on the common stock is 15.0% Question 23 (1 point) What should the price of the preferred stock be today? $100 $200 $50 Question 24 (1 point) What should the price of the common stock be today? $60 $50 3 Question 24 (1 point) What should the price of the common stock be today? $60 $20 $66 $30 Question 25 (1 point) You disagree with the growth rate information provided and believe that the growth rate for common dividend 50 percent this year, 20 percent the following year, and a constant rate of 10 percent thereafter. Based on the growth rates, what should the price of the common stock be today? O $124.2 $66 3 $30 Question 25 (1 point) You disagree with the growth rate information provided and believe that the growth rate for common dividends will be 50 percent this year, 20 percent the following year, and a constant rate of 10 percent thereafter. Based on these revised growth rates, what should the price of the common stock be today? $124.2 $97.8 $66.0 Song $60.0 $118.8 Previous Page M