Price of a common share of stop

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1) The Iron bank of Braavos just paid $10 dividend on preferred shares which is expected to grow annually by 5% per year. If the discount rate is 8%, what must be the price of a preferred shared be today?

2) Next year a company is expected to pay $2 as a dividend. Its return on equity is generally 3%, the discount rate 5%, and the company usually retains about 40% of its earnings. What is the price of a common share of stock?

3) Med Sci. Inc just paid $0.50 per common share dividend which is expected to grow by 10% each year into the indefinite future. If the market discount rate for Med sci Inc. Common stock is 14% what must the price of a common share of stop be today?

Reference no: EM131061262

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