Question
Solve the quantitative tasks below using Python Please solve separately using a python for each question with the final answer 1. What is the value
Solve the quantitative tasks below using Python
Please solve separately using a python for each question with the final answer
1. What is the value of a preferred stock where the dividend rate is 15% on a $100 par value? The appropriate discount rate is 12%.
a.$127.75 b.$115.25 c.$125.00 d.$130.25 e.$102.95 |
2. You are looking to purchase Ordway common stock at $55 per share, hold it for one year, and sell it after a dividend of $3 is paid. What would the stock price need to be in order to satisfy your required rate of return of 15%?
a.$60.25 b.$72.15 c.$55.08 d.$58.75 e.$65.50 |
3. Calculate the value of a preferred stock that pays a dividend of $5 per share and the required rate of return is 14%.
a.$30.90 b.$38.22 c.$32.50 d.$35.71 e.$41.00 |
4. You purchased a stock priced at $100. Its dividends are expected to grow at a rate of 4% per year forever. You require a return of 10% on your investments. What will this years dividend be?
a.$5.00 b.$6.00 c.$6.24 d.$5.45 e.$7.35 |
5. ABCs common stock currently sells for $36.68 per share. The companys executives anticipate a growth rate of 6% and a future dividend of $1.75. What is your expected rate of return?
a.9.33% b.9.45% c.10.56% d.10.77% e.10.25% |
6. You are considering purchasing Quarry Diamonds stock. They have promised to pay dividends of $2.50, $3.00, and $3.50 over the next three years. Dividends will grow at 5% after that indefinitely. How much are you willing to pay for the stock if your required rate of return is 11%?
a.$47.39 b.$49.32 c.$45.63 d.$42.98 e.$37.29 |
7. Jennie purchased $10,000 worth of Techno Corps stock at $50/share. She held this stock for one year. After receiving a dividend of $2.00/share, she sold it for $52.50/share. What is her rate of return?
a.9.6% b.10% c.9.2% d.9% e.9.8% |
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