Study Guide

Suppose AMC's preferred stock is currently selling for $34. If the company gives $1 dividend per year what is the market's required rate of return for the stock? (Round your answer to two decimal points) Suppose SnapChat announced that it will give $1.84 dividend to it common stockholders next year. It also said that it plans to grow future dividends 4% annually for the foreseeable future. If you require a 10% return on your investment, how much are you willing to pay for the stock? (Round your answer to two decimal point) Suppose Uber announced that it will give $2 dividend to it common stockholders next year. It also said that it plans to grow future dividends 7% annually for the foreseeable future. If you require a 14% return on your investment, how much are you willing to pay for the stock? (Round your answer to two decimal point) Suppose you are trying to figure out the dividend growth rate of Walmart's stock. If the company pays a dividend of $1.97 and is currently selling for $107 and the investors require a 9% return on their investment from buying the stock, what is the growth rate of its dividend? (Round your answer to two decimal points) Suppose you want to own some Comcast's preferred stocks. If the stock gives $3.5 dividend per year and you require a 14% return on your investment, how much are you willing to pay for the stock? (Round your answer to two decimal point) Suppose T-Mobile pays a dividend of $2.33 and is currently selling for $188. If investors require a 8% return on their investment from buying the stock, what growth rate would T-Mobile have to provide the investors on it dividend? (Round your answer to two decimal points)