Question 3- 2 marks A preferred share of Winter Company pays an annual dividend of $12. It has a required rate of return of 9 percent. Compute the price of a preferred share. Include all calculations. Question 4 - 8 marks Kitchener Company will pay a dividend of $1.25 per share in the next 12 months (D). The required rate of return (Ke) is 8 percent and the constant growth rate is 4 percent. a) Compute Po. (2 marks) a. (For the remaining questions in this problem, all variables remain the same except the one specifically changed. Each question is independent of the others.) b) Assume Ke, the required rate of return, goes up to 12 percent, what will be the new value of P.? (2 marks) c) Assume the growth rate (g) goes up to 6 percent, what will be the new value of P.? (2 marks) d) Assume Dis $2.00, what will be the new value of Po? (2 marks)