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Q5. Solve the following: (4+3+3=10) XYZ Corp. issues preferred stock that pays a dividend of Rs. 5.50 forever. Investors could invest their money at 7%.

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Q5. Solve the following: (4+3+3=10) XYZ Corp. issues preferred stock that pays a dividend of Rs. 5.50 forever. Investors could invest their money at 7%. For how much value will the preferred stock sell? Stoney Mason, Inc. has sales of $6 million, a total asset turnover ratio of 6 for the year, and net profits of $120,000. What is the company's return on assets? The stock of the Health Corporation is currently selling for $20 a share and is expected to pay a $1 dividend at the end of the year. If you bought the stock now and sold it for $23 after receiving the dividend, what rate of return would you earn

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