1. The preferred stocks of ABC pays annual divided of $6.50. What is the price of the preferred stock if the required return is:

a. 6% b. 10%

2.Jia's Kitchen Stuff has recently sold, 1,000 shares of $9.50 preferred stock. What is the value of the stock assuming 8 percent required rate of return?

3.ABC is expecting to pay $2.40 per share dividends at the end of the next 12 months. The growth rate in dividends is expected to be constant at 9% per year. If the stock is selling for $51.30 per share, what is the required rate of return?

4.A 10 year bond pays 10% semi-annually. If a similar bond are currently yielding 8% semi-annually, what is the market value of the bond?

5.A 30 years bond pays 7.5% on a face value of $2000. If similar bonds are currently yielding 9%, what is the market value of the bond?