Question
QUESTION 29 The present market price for preferred stock is $55.50. If the stock pays a dividend of $2.14, what is the expected rate of
QUESTION 29
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The present market price for preferred stock is $55.50. If the stock pays a dividend of $2.14, what is the expected rate of return?
3.86%
3.47%
4.13%
4.29%
4.4 points
QUESTION 30
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All In Corporations common shareholders expect to receive $1.635 per share dividend next year based on the fact that they received $1.50 last year and they expect dividend to grow 9% next year. Furthermore, analysts predict that dividends will continue to grow at a rate of 10% into the foreseeable future. If All In were to issue common stock at $37.50 a share, the firm would incur a $4.50 per share cost to sell the new shares. What is the cost of the new common stock issue?
11.97%
13.95%
12.91%
14.86%
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