Find the value of the stock

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Question: 1. (Preferred stock valuation) What is the value of a preferred stock when the dividend rate is 16 percent on a $100 par value? The appropriate discount rate for a stock of this risk level is 12 percent.

2. (Preferred stock valuation) The preferred stock of the Gandt Corporation pays a $2.75 dividend. What is the value of the stock if your required return is 9 percent?

3. (Preferred stock valuation) Queens Park Plc. issued preference shares with par value $100 and annual preferred dividend of 10 percent. What is the price of Queens Park Plc' preference shares if the appropriate discount rate for a stock of this risk class is 16 percent.

Reference no: EM131488297

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