Calculate the price of one share of such stock

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1. An issue of 6% preferred stock with a par value of $50.

Calculate the price of one share of such stock when investors require a rate of return of 7%. ___________

2. An issue of $5 preferred stock with a par value of $50.  

Calculate the yield on such stock if its market price is $42. __________

3. An issue of common stock that paid a dividend yesterday of $2.80.

Calculate the value of one share of this stock to an investor who requires a 10.4% rate of return and who forecasts that the company's dividends will grow at a constant annual rate of 4%. ___________

Reference no: EM132002043

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