True or False :Indicate whether true and false and ONLY correct false statements 1) In the case of liquidation, common stockholders are paid first, followed by preferred stockholders, followed by bondholders. 2) Preferred stock has characteristics of debt since it provides a fixed periodic cash payment 3) A call feature is a feature that allows preferred stockholders to change each share into a stated number of shares of common stock. 4) The number of outstanding shares of common stock is always greater than or equal to the number of authorized shares of common stock. 5) Super-voting shares of common stock provide shareholders with ten times the voting power of ordinary shares of common stock. Questions using Excel: 1- In response to the stock market's reaction to its dividend policy, the Nilco's Toy Company has decided to increase its dividend payment at a rate of 4 percent per year. The firm's most recent dividend is $3.25 and the required rate of interest is 9 percent. What is the maximum you would be willing to pay for a share of the stock? 2- Mia's Doll Company has an outstanding preferred issue of stock with a par value of $100 and an annual dividend of 10 percent of par). Similar risk preferred stocks are yielding an 11.5 percent annual rate of return. What is the current value of the outstanding preferred stock? 3-The Erie Heating Company has been very successful in the past four years. Over these years, it paid common stock dividend of $4 in the first year, $4.20 in the second year, $4.41 in the third year, and its most recent dividend was $4.63. The company wishes to continue this dividend growth indefinitely. What is the value of the company's stock if the required rate of return is 12 percent? 4-China America Manufacturing has a beta of 1.50, the risk-free rate of interest is currently 12 percent, and the required return on the market portfolio is 18 percent. The company plans to pay a dividend of $2.45 per share in the coming year(2022) and anticipates that its future dividends will increase at an annual rate consistent with that experienced over the 2018-2021 period. 2019 2.10 2020 2.21 2021 2.32 5- Julie's X-Ray Company paid $2.00 per share in common stock dividends last year. The company's policy is to allow its dividend to grow at 5 percent for 4 years and then the rate of growth changes to 3 percent per year from year five and on. What is the value of the stock if the required rate of return is 8 percent? True or False :Indicate whether true and false and ONLY correct false statements 1) In the case of liquidation, common stockholders are paid first, followed by preferred stockholders, followed by bondholders. 2) Preferred stock has characteristics of debt since it provides a fixed periodic cash payment 3) A call feature is a feature that allows preferred stockholders to change each share into a stated number of shares of common stock. 4) The number of outstanding shares of common stock is always greater than or equal to the number of authorized shares of common stock. 5) Super-voting shares of common stock provide shareholders with ten times the voting power of ordinary shares of common stock. Questions using Excel: 1- In response to the stock market's reaction to its dividend policy, the Nilco's Toy Company has decided to increase its dividend payment at a rate of 4 percent per year. The firm's most recent dividend is $3.25 and the required rate of interest is 9 percent. What is the maximum you would be willing to pay for a share of the stock? 2- Mia's Doll Company has an outstanding preferred issue of stock with a par value of $100 and an annual dividend of 10 percent of par). Similar risk preferred stocks are yielding an 11.5 percent annual rate of return. What is the current value of the outstanding preferred stock? 3-The Erie Heating Company has been very successful in the past four years. Over these years, it paid common stock dividend of $4 in the first year, $4.20 in the second year, $4.41 in the third year, and its most recent dividend was $4.63. The company wishes to continue this dividend growth indefinitely. What is the value of the company's stock if the required rate of return is 12 percent? 4-China America Manufacturing has a beta of 1.50, the risk-free rate of interest is currently 12 percent, and the required return on the market portfolio is 18 percent. The company plans to pay a dividend of $2.45 per share in the coming year(2022) and anticipates that its future dividends will increase at an annual rate consistent with that experienced over the 2018-2021 period. 2019 2.10 2020 2.21 2021 2.32 5- Julie's X-Ray Company paid $2.00 per share in common stock dividends last year. The company's policy is to allow its dividend to grow at 5 percent for 4 years and then the rate of growth changes to 3 percent per year from year five and on. What is the value of the stock if the required rate of return is 8 percent