What do investors require as a rate of return on this stock

Assignment Help Financial Management

Reference no: EM131559666

Consolidated Industries issued preferred stock 10 years ago. The preferred stock has a par value of $1.00 and pays a dividend of $6.50 per share. It presently sells for $83 per share. Assuming that the market is efficient, what do investors require as a rate of return on this stock? Round off to the nearest .10 percent.

Reference no: EM131559666

Questions Cloud

Compute its projected internal rate of return : You are evaluating a new potential project. You compute its projected internal rate of return (1RR), which equals 18%.

Do you think the project should be accepted and why : Do you think the project should be accepted? Why? Define and describe Net Present Value (NPV) as it pertains to the new cafe.

Calculate internal rate of return-net present value project : Calculate the internal rate of return (IRR) and the net present value (NPV) of a project

How much longer is the longest path than the shortest path : Create an algorithm for the shortest and longest path that you can find for the graph and how much longer is the longest path than the shortest path?

What do investors require as a rate of return on this stock : Consolidated Industries issued preferred stock 10 years ago. Assuming that the market is efficient, what do investors require as a rate of return on this stock?

Considering the purchase of an investment : You are considering the purchase of an investment that would pay you $5,000 per year for Years 1-5, how much should you be willing to pay for this investment?

Write about the deposit of the faith just tell about it : Write about the Deposit of the faith just tell about it the situation do not just describe it or give meaning to it. give enough infomation about it.

Present value of this project at a discount rate : What is the present value of this project at a discount rate of 13 percent, compounded annually?

Calculate the initial equity investment : calculate the initial equity investment.

User Account

All Pages